- Reuters/Rick Wilking
- The US stock market has faced a heavy selling over the past few weeks amid fears surrounding rising interest rates and escalating trade tensions.
- Warren Buffett tells investors to buy, hold, and don’t watch too closely when the stock market sells off.
- Investors on Robinhood, which is popular among younger traders, seem to be following Buffett’s advice as a majority of the most-popular stocks on the trading app have seen investor interest increase over the past three weeks.
The US stock market has faced a heavy selling during the month of October amid fears over rising interest rates and escalating trade tensions. At its lows, the S&P 500 had lost 7% this month, but it seems investors on the free-trading app Robinhood are heeding the advice of the legendary investor Warren Buffett, who always tells investors to keep clam and focus on the long term.
“Don’t watch the market closely,” Buffett told CNBC when asked about advice for investors who were worried about their retirement savings during a wild bout of market volatility back in 2016.
“If they’re trying to buy and sell stocks, and worry when they go down a little bit … and think they should maybe sell them when they go up, they’re not going to have very good results.”
And investors on Robinhood, a free-trading platform popular among younger traders, seem to be heeding Buffett’s buy-and-hold strategy during the recent market sell-off.
According to data tracked by Business Insider, a majority of the most-popular stocks on Robinhood have seen the number of investors increase over the past three weeks, with only nine out of the 30 most-popular names losing holders on the app.
Two cannabis stocks, Cronos Group and Canopy Growth saw investors loading up on shares ahead of Canada becoming the second country in the world to legalize marijuana, with net investor additions at 25,654 (+19.6%) and 21,077 (+28%) respectively.
On the flip side, AMD saw the biggest drop in the number of investors with a net of 13,677, or 8.1% investors, selling their holdings since September 27 following word that rival Intel could ramp up its chip production sooner than expected.