While stock price volatility is painful in the short term, it creates opportunity for the long-term investor. A manic market on a downswing can unsettle many investors into believing that a good, stable and growing business has permanently and materially lost value based on an exogenous event that has little or no effect on the earnings or growth of that business. In-depth knowledge of the businesses you own, combined with patience, is key to seizing the opportunities created by market declines.
Through the ups and downs, we maintain our discipline of uncovering and investing in companies with superior prospects. We pick stocks carefully. We are patient. We are ready to take advantage of opportunities. This approach should continue to serve our clients well over the long term.