After a last few months of stagnant market, the "volatility" finally made a return! It marked its return by an outright 9.2% crash, the largest intra day drop noted since the famous 1987 market collapse! Many of the stocks fell to as low as a few cents! Did you feel hassled? Did some of you jump into selling some of your stocks in fear of what may come? Well, some of you informed me you did exactly that. If you are one of them, you need to adapt yourself to "enjoy" this volatility, rather than run away!
Testing times?...
It is in these tough times, that the portfolio is tested for what it is worth. It is in these times, do we see the benefits of investing in fundamentally solid companies, which have the strength to last bad patches of volatility or economic downturns. It is these stocks you can hold for years, knowing they will only come back stronger with time! As we stand today, our Average portfolio returns relative to S&P is 142.11% and we hope to stay ahead of the market!
Our Strategy?....
When others sell in panic, we buy solid stocks and do not worry about temporary losses! We bought WFMI, when the world was selling. It remained battered for a few months, but we were still patient. Today, we have over 300% returns on it and still we are holding it. Hence, we will continue to add solid companies with a long term horizon and ignore the market volatility in the mean time.
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