Market Correction

“Real investment risk is measured not by the percent that a stock may decline in price in relation to the general market in a given period, but by the danger of a loss of quality and earning power through economic changes or deterioration in management.”

“It is a safe prediction for me to make that, in future years as in the past, common stocks will advance too far and decline too far, and that investors, like speculators — and institutions, like individuals — will have their periods of enchantment and disenchantment with equities.”

“By the time market declines (or advances) are front-page news, they usually have run their course.”

“If you’re going to be in this game for the long pull, which is the way to do it, you better be able to handle a 50% decline without fussing too much about it.”

“The underlying driving force behind market timing decisions seems to be emotional — fear, greed, chasing performance — buying something after it has gone up, disappointment, and sales after something has declined.”

“Of all the mysteries of the stock exchange there is none so impenetrable as why there should be a buyer for everyone who seeks to sell. October 24, 1929 showed that what is mysterious is not inevitable. Often there were no buyers, and only wide vertical declines could anyone be induced to bid.”

“Whenever you get a wild excess on the upside, the following correction doesn’t just go back to normal; it almost always falls way below normal.”

“If you’re in the market, you have to know there’s going to be declines.”

“If you don’t believe corporate profits will continue to rise, and you can’t stomach a decline in the market, don’t buy stocks or equity mutual funds.”

“This is the way the capitalist ecology works. Industries decline, old companies wither away, and young companies rise up to replace them. This process is hard on many, but ultimately, it is healthy.”

“A correction is a wonderful opportunity to buy your favorite companies at a bargain price.”

“People who exit the stock market to avoid a decline are odds-on favorites to miss the next rally.”

“Corrections are unpredictable. By selling stocks to avoid pain, you can miss the next gain.”

“Long-term bonds can be almost as volatile as stocks. They have their own corrections.”

“As soon as you realize you can afford to wait out any correction, the calamity also becomes an opportunity to pick up bargains.”

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.”

“A correction is nothing more than a Wall Street euphemism for losing a lot of money very rapidly.”

“Everyone says they’re a long-term investor until the market has one of its major corrections.”

“When I ran Magellan Fund, the market had 9 declines of 10 percent or more in those 13 years. I had a perfect record. All 9 times, my fund went down.”

“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready. You won’t do well in the markets. If you go to Minnesota in January, you should know it’s gonna be cold. You don’t panic when the thermometer falls below zero.”

“It’s very understandable to have a quick, sizable correction, even if the fundamentals are fine.”

“So the stock market will definitely have a correction. Everybody will say that it is the end of the world. I predict it. They will say the big one’s coming.”

“At some point, we will have a major correction and everybody will get scared again, and we will have another buying opportunity.”

“I’ve been fully invested at the start of all the major declines and I will be fully invested in the next one. I am not a market predictor, that’s for darn sure.”

“Even in good markets we have declines and trying to predict its direction over the near term is an exercise in futility.”

“It would be very useful to know what the market is going to do. But unfortunately, of all the market corrections that have ever come, no one has been able to predict them.”

“Recessions are not failures — they’re necessary corrections”

“Cash really hurts if you hold it very long in an equity market that is compounding at close to 20% per annum.”

“After a stock market decline, people may perceive more risk than before when, in fact, the decline may have taken some of the risk out of the market.”

“The fact that a stock is considered to be growth stock is no assurance against a decline in income or market value during the downtrend of a business cycle, as growth stocks often depreciate as much as other groups.”

“What publicly-traded companies are worth is roughly 90% dominated by the cash flows they produce over time and 10% by what the market will pay for these types of companies at any given time.”

“Historically, many companies that have had terrible times have come back, or many of them do. A decline doesn’t mean it’s the end.”