Warren Buffet’s investment expertise has been sharpened through the 1973-1974 Oil Crisis Bear Market, the 1987 Stock Market Crash, the Dot-com Bubble (2000-2002), the 2008 Financial Crisis, the COVID-19 Pandemic (2020) and the years in between. Through his investment company, Berkshire Hathaway, Buffett has become one of the wealthiest people in the world with a net worth estimated at $162.1 billion.

“The stock market is a device for transferring money from the impatient to the patient.”

Buffett believes market volatility is a natural part of investing, and that patience and discipline are crucial for long-term success. He sees market downturns as opportunities to buy quality investments at lower prices.

In essence, Buffett encourages investors to remain patient and focus on long-term value. Looking at the big picture can help mitigate the stress of market volatility and lead to more stable financial outcomes.

Sir John Templeton made a bold move at the onset of World War II when he bought 100 shares of each company on the New York Stock Exchange priced under $1 per share. By buying when others were selling, he was able to benefit from wartime economic activity.

In 1954, he launched the Templeton Growth Fund, which over 38 years grew 15% each year on average. Templeton’s mettle was tested by the 1973-1974 Oil Crisis Bear Market, the 1987 Stock Market Crash and the years in between. Money magazine named Templeton “arguably the greatest global stock picker of the century” in 1999.

Templeton pioneered the concept of international diversification – advocating that investments should be spread across different asset classes and geographic regions to mitigate risk. Today diversification is an established strategy.

“To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward.” Templeton believed that market volatility presents opportunities for disciplined investors to seize advantage.

“The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell,” he said.

Benjamin Graham invested through the Great Depression (1929-1939), the Post-World War II Recession (1945-1949) and the 1958 Recession. Graham’s books, “Security Analysis” (1934) and “The Intelligent Investor” (1949), have educated generations of investors to remain patient, focus on value and stay disciplined during periods of market volatility.

“The intelligent investor is a realist who sells to optimists and buys from pessimists,” Graham said.

Graham believed that market volatility is a given, but also an opportunity. This means taking advantage of market downturns to buy quality stocks at lower prices, rather than panicking and selling.

“ But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”

Graham cautioned against letting emotions drive investment decisions, as fear and greed can lead to poor outcomes. Instead, he advocated for a systematic approach to investing grounded in thorough analysis and a clear understanding of one’s financial goals.

With many Australians concerned about how geopolitical events are impacting their retirement savings, it’s reassuring to know that investors before us have faced similar challenges.

Their experiences through significant market disruption teach us that staying the course, remaining disciplined and reining in our emotions are key to building and preserving retirement wealth.