What do you do when the stock market falls?
- Don’t panic
- See the long-term picture
- Watch dividends not stock prices
- Buy high quality businesses trading at a discount
The act of knowing that we are predisposed to over-reaction can help us prevent it from occurring. Investing is very much a calm man/woman’s sport. You must separate yourself from your emotions and behavioral biases if you want a chance of doing well.
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