The most important lesson from ’87

Paul Moore, Chief Investment Officer at PM CAPITAL is one of the few Australian fund managers who was managing money during the last Australian recession. While every market is different to the last, some wisdom is timeless. “The one thing that resonates over all markets and all experiences coming out of ’87 was the Peter Lynch quote, it’s my favourite quote of all time. ‘The day after the market crashed in 1987, people began to worry that the market was going to crash.’” The lesson from this, he says, is that to be a successful investor, you must be forward-looking and not worry about what’s already happened. After the ’87 crash, investors positioned their portfolios for the crash that had already occurred. “If you want to be a successful investor, you’ve got to do the exact opposite - you’ve got to take advantage of those opportunities”. Watch the video for more investing wisdom.