1 week A Warning: if your companies are not self-funding than rising rates and falling stock prices could be trouble Reddit    

I’ve seen a lot of people in here distressed that stocks are down. If you’re really a long-term investor,and your businesses are performing well, and you have an adequate cash reserve, then you should not give a shit about whatever tantrum the market is having today or even over the next few years.

BUT

If the companies you own rely on issuing either debt or equity to stay in business, you could be in trouble. If rates rise, debt will get more expensive. If stocks fall, the value of equity issues falls too.

So buy self funding businesses. Don’t be overly exposed to macro factors that nobody can predict.

Lastly, a reminder that if you owned Amazon from day one then you rode it from $2 to >$100, then back down to $7, and then didn’t see $100 again for 10 years. In 20 years you had >$3,000. That’s what one of the best investments of all time felt like.

So definitely don’t panic because prices are down for a few months, but do think about what you own and be cautious.

submitted by /u/pat379
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