Five Resilient Tips For Picking Long-term Share Winners

Fundamental equities research house and fund manager Lincoln Indicators says successful investors with longer-term investment horizons view the current market volatility as a great long term buying opportunity by focusing on buying healthy Australian companies trading at reduced prices.

It has been twenty-one years since the October 1987 crash where the market fell by 25.0%1 in one day and 50.1%2 in the following two months. What followed was a 'once in a generation' buying opportunity as the market hit a low of 1,151.00, that is, an investor who remained invested over this period would have made a 226%3 gain despite the recent low of 3,755.40.

The lesson to be learned for investors is that you need to be in the market and to watch for opportunities as they present themselves - because the market now represents the best value since 1987 and is a 'once in a lifetime' opportunity.

"There are opportunities to buy into the sharemarket at discounted prices. Quality companies have been sold down and now is the time to consider building a portfolio of shares to build your wealth in the long run," said Elio D'Amato, chief executive officer, Lincoln.

"Investors already holding quality investments need to be patient and ride out the storm. When the volatility passes, your portfolio would ideally be exposed to healthy companies that will fully benefit from a recovery" said Mr D'Amato.

"The important point for investors is that now is NOT the time to panic."