Thursday, October 1, 2009

Don't Panic Sell, Beat Mr. Market

The markets MAY have started a long awaited correction today, but then again it's impossible to tell for sure. Know the value in the companies you own, don't panic sell, and use major dips in the market as buying opportunities.

By trying to time the market's daily fluctuations you are playing a game that you can not win. This is how people end up buying high and selling low; the exact opposite of what you want to do. So please, have conviction in the companies that you own. If something material changes in one of your holdings then re-evaluate but otherwise do not let "Mr. Market" faze you. If anything, I get a little excited on days like today because it means we may finally have some more buying opportunities than we've had for the past couple of months. You should have a list of companies you would like to own, and then when the market finally serves them to you on a silver platter for the price you've wanted to pay for them, take it. If the market continues to drop, then buy some more. Over the long-term you WILL beat Mr. Market this way.

Stay strong my friends... we may have some exciting weeks ahead.

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