To The Moon

To describe the market's sharp fall or my feelings in one word, "focus" would be relevant. Sticking to your plan and strategies will benefit you in the long run, so don't lose focus on them! @CaptainTiger

Those of you who have read The Essential Buffet - Timeless Principles for the New Economy by Robert G. Hagstrom would remember chapter 5 - "Focus Investing: The Big Picture". And more importantly on page 129 "The Focus Investor's Golden Rules" is listed. It is still very relevant today and more importantly in this tumbling market. @TigerStars

Rule 1 - Concentrate your investmentsa in outstanding companies run by strong management.

Warren Buffett mentioned "If the company itself is doing well and is managed by smart people, eventually its inherent value will be reflected in its stock price."

Rule 2 - Limit yourself to the number of companies you can truly understand. Ten is a good number; more than 20 is asking for trouble.

Philip Fisher was known for his focus portfolios, he always said he preferred owning a small number of outstanding companies that he understood well, rather than a large number of average companies, many of which he understood poorly. Less is more.

Rule 3 - Pick the very best of your good companies, and put the bulk of your investment there.

Put big bets on high probability events. Even though all the stocks in a focus portfolio are high probability events, some will inevitably be higher than others, and they should be allocated a greater proportion of the investment.

Rule 4 - Think long term - 5 to 10 years, minimum.

Be patient. In shorter periods, changes in interst rates, inflation, or the near term expectation for a company's earnings can affect share prices. But as the time horizon lengthens, the trend line economics of the underlying business will increasingly dominate its share price.

Rule 5 - Volatility happens. Carry on.

Last but not least, the rules that is being tested in today's market, don't panic over price changes! The ride will be bumpy, for price volatility is a necessary by-product of the focus approach. Focus investors tolerate the bumpiness because they know that, in the long run, the underlying economics of the companies will more than compensate for any short-term price fluctuations.

Focus!