Among the headlines of shalling share prices and unexpected returns in recent weeks, some investors cultivate enormous losses – but others have earned a lot of money in a miniature time. While the USA S&P 500 The index met the formal definition of a stock market last month (decrease in 20% in a miniature time), on this side of the pond it was not so bad, although many individual shares were promoted.

Although the crash on the stock exchange can be terrifying-especially if you have not experienced it before-also to offer unique opportunities for a long-term investor to try to build wealth.

But the possibility window can be Very restricted.

That is why I am preparing for another stock market now, even though I have no idea how far it can be. It can be here in days or may take decades.

Coping with drives is shared by valuations

An essential thing for the investor at any time is how shares are valued in practice (sometimes very incorrect) and how they should be theoretically valued.

Different investors have their own thoughts on the last point, but regardless of the valuation, they approach personally to assess whether the share is potentially an opportunity, you need Some A way to do that.

Why does this matter in a stock market and more generally?

Something that is common in a disaster is that many share prices will fall seemingly uncritically. For some, a decrease in valuation does not make sense.

However, for others, whatever caused a disaster, it also negatively affected their quote (for example, think about banks during the last financial crisis). If you do not understand what drives the valuation, you cannot reliably assess whether the decline in the action in the disaster is justified or not.

When shops have amazing sales, a willing buyer in a queue knowing exactly what they want to get when the door opens – because they know that it may not be long there.

I treat the stock market in the same way, so I devote time to prepare for it, having a list of shares that I want to buy as soon as I can buy them at an attractive price.

For example, consider Apple (NASDAQ: AAPL). In the past I had a technical share, but eventually I sold it (with a handsome profit) when he reached a point that I felt that he was overstated.

What I liked in Apple’s business is originally valid. From the iconic brand and enormous user base, to a reserved technology and a service company with huge potential, I see it as a machine for making money. Net income last year amounted to USD 94 billion.

Although it is huge, the second year fell on the trot. Apple faces many risks: destitute management hurts consumer demand, cheaper Asian rivals taking part in the market, and the US tariff policy adds costs that are in mind.

However, at the right price, to reflect this risk, as well as the possibilities, I would catch participation. It is on my shopping list of the next accident on the stock exchange if it reaches the right price!