The ASX stock market is currently going through a bit of a decline. Since 15 September 2023, the S&P/ASX 200 Index (ASX: XJO) has dropped 3.2%.
Volatility has impacted other markets even more. For example, the NASDAQ-100 Index (NASDAQ: NDX) has declined 5.8% since 14 September 2023.
It's understandable why some investors may be fearful as seeing the ASX stock market fall may cause some people to pause on investing, or worry about their existing holdings.
Why I'm getting excited about the ASX stock market
There is regular volatility in the market. Volatility is the 'price' of entry to the share market and it gives investors liquidity to enter and exit positions. Every day there are different buyers and sellers, and they are reacting to the latest news.
But, I don't get scared by that volatility because of a few different reasons.
For my existing positions, it can be painful to see the decline, but I'm not retiring next week or next month. I have decades of investing ahead of me, so what happens in 2023 probably won't be impacting my portfolio in 2033 or 2040.
The same mentality can even be taken by people in retirement – a 70-year-old may still have 10, 20 or 30 years of time needing money to spend, so it could be useful to stay invested in the ASX share market for many years ahead.
When share prices fall I get excited because it means that I can buy assets at cheaper prices. I imagine I'll be buying shares for at least the next 50 years, so I like seeing opportunities pop up.
Of course, share prices don't just fall for no reason. There has to be something that worries the ASX stock market, such as a pandemic or the highest rate of inflation for decades. The more fearful investors become (and share prices fall), the more motivated I am to invest.
I invested a lot during the first half of 2020. I'm not expecting the share market to fall remotely that much, but I think this is becoming an increasingly attractive time to invest.
What would Warren Buffett do?
The great investor from Omaha has said a number of wise things about investing when shares have declined. One of my favourites is: "Be fearful when others are greedy and greedy when others are fearful."
Another of his quotes that I like is about burgers:
To refer to a personal taste of mine, I'm going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the 'Hallelujah Chorus' in the Buffett household. When hamburgers go up in price, we weep. For most people, it's the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don't like them anymore.
I'm planning to be very greedy and buy plenty of 'burgers', particularly if share prices keep falling.