Like waves in the ocean, market volatility is a part of investing that’s normal and inevitable.

Our valued partners at EdgePoint prepared the below PDF to be like a “life vest” that can help rescue you from your own emotions and keep you safely focused on your long-term financial objectives.

EdgePoint's volatility life vest

While all their insights are of value, the three sections that stand out to us are:

Page 3:

We have met the enemy and it is us

It is not about timing the market, but about time in the market. Staying invested throughout volatility is what has historically achieved long-term investment objectives. Full stop.

Page 6:

Stock price fluctuations ≠ business value fluctuations

We shared a quote recently, “volatility is the friend of investors that know what they own; and the enemy of those that don’t.“

Intelligent investors think of themselves as business owners, and we look to partner with investment managers who keep quality, valuation, and growth potential at the forefront of their decision-making process.

Page 12-13:

Time after time

“This time is different” have been dubbed the four most costly words ever spoken. These pages speak to that.

All of these instances are different, but what remains the same? A long-term investor in a portfolio of quality businesses such as those found in the S&P 500 has historically recovered, and seen significant growth, despite these declines.

We encourage you to keep this “life vest” within reach when volatility draws near!