Tuesday, September 22, 1998

Don't Panic
by [email protected]

I'm 73 and I've seen plenty of breaks in the market. If you are terror stricken, it's probably because of one of the following.

1. You need the invested money in the short term. You ignored the advice to keep a reasonable reserve. I think in that case you should sell something.

2. You bought with borrowed money. I feel sorry for you. Borrowing money is the only way to get rid of a fortune that has a reliable track record. Resolve to pay off your debt in the future.

3. You think the whole system is cracking and capitalism doesn't work. The answer to this is that science and technology, the foundation of increasing prosperity, are advancing faster than ever. Capitalism is not hindering this development.

4. You don't understand the companies whose shares you bought. In this case please study the annual reports. Study the competing companies. If your companies look excellent by comparison, then please relax and think about other matters. If the competing companies look better, then reflect on your method of stock picking and change it.

Market declines can be very educational, providing you with the foundation for your future great success.

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