Stocks Are Crashing: Here's Why I'm Still Buying
I've been successful as an investor over the past 15 years, managing to build up a sizable portfolio along the way. And while a significant amount of my success is a product of fortunate timing -- a decade-long bull market is an incredibly powerful wealth-generator -- I've also outperformed the market over the long term by focusing on buying great businesses and holding them. Trading stocks doesn't build wealth; owning great companies for very long periods of time is the trick.
That truth is very hard to remember when it feels like the world is going crazy. We have experienced more days of extreme volatility in stocks in the past few weeks than we have in the past few years. Any one of no less than five trading days over the past 10 would qualify as either the worst or best day for stocks in several years, and we very well could break the record for the fastest double-digit drop by the S&P 500 in history this week.
The prior record was reached less than two weeks ago. Even the most steady of hands may be feeling their resolve tested right now.
Source Fool.com
