Key takeaways
- Warren Buffett's 2008 rule for that moment is one sentence long, it cost its followers 26.9% before it paid them 85.8%.
- The S&P 500 index fund rose 2.4%, its biggest gain since April 8, and the Nasdaq-100 fund rose 3.5%.
- On Friday afternoon, after a week of headlines, he typed an order to move $600,000 of the IRA’s index fund to cash, the money market fund, until things settled down.
The Dow jumped about 1,100 points on Monday after stocks' worst week since April, while the worries behind the selling were still there. Warren Buffett's 2008 rule for that moment is one sentence long, it cost its followers 26.9% before it paid them 85.8%, and for a retired couple with $1.8 million it turns a $600,000 sell order into one number.
