The investor with a portfolio of sound stocks should expect their prices to fluctuate and should
- neither be concerned by sizable declines
- nor become excited by sizable advances.
He should always remember that market quotations are there for his convenience,
- either to be taken advantage of or
- to be ignored.
He should never
- buy a stock because it has gone up or
- sell one because it has gone down.
He would not be far wrong if this motto read more simply: “Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop.”