Be prepared to hold onto quality companies through market fluctuations from "summary" of The Little Book That Builds Wealth by Pat Dorsey
When it comes to investing, it's important to remember that the stock market is inherently volatile. Prices can swing wildly in the short term based on a multitude of factors, many of which have nothing to do with the underlying quality of a company. This can create a lot of uncertainty and fear among investors, leading to knee-jerk reactions and hasty decisions. One key concept to keep in mind during these times of market turmoil is the idea of holding onto quality companies through these fluctuations. Quality companies are those that have strong fundamentals, such as a competitive advantage, a solid balance sheet, and consistent earnings growth. These are the companies that are likely to weather market storms and come out stronger on the other side. It can be tempting to sell off your holdings when the market takes a dive, especially if you see the value of your investments plummeting. However, by selling off your shares in a panic, you may actually be locking in losses and missing out on potential future gains when the market eventually rebounds. ...
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