Skip to Content
Stock Strategist

Ultimate Stock-Picker's Portfolio: Performance Update

Despite a pullback, our performance continues to best the market.

Mentioned: , , , , , , , , ,

The market volatility over the past month, and the precipitous drop in the share prices of most financial companies, certainly gives us all pause when examining our investment choices. To be sure, it's not easy to watch paper profits earned over a full year evaporate in a matter of a few days, but if we truly believe in the favorable economics of the underlying businesses in our portfolio, just because the market has suddenly quoted its value at a lower price than the prior day's close should not make us anxious. Instead, we should be filled with a sense of opportunity at the potential bargains to be had. One of my favorite quotes from  Berkshire Hathaway (BRK.B) chairman Warren Buffett illustrates this viewpoint perfectly:

"Investors who expect to be ongoing buyers of investments throughout their lifetimes should adopt a similar attitude toward market fluctuations; instead many illogically become euphoric when stock prices rise and unhappy when they fall. They show no such confusion in their reaction to food prices: Knowing they are forever going to be buyers of food, they welcome falling prices and deplore price increases. (It's the seller of food who doesn't like declining prices.)"

Justin Fuller has a position in the following securities mentioned above: AXP, DELL, PHM, COF. Find out about Morningstar’s editorial policies.