36 of 40
BACK NEXT
Ignore short-term market swings
Christopher Browne
Chairman, Tweedy Browne

I was leaving the office at the end of Black Monday, the day of the '87 crash, and Joe Reilly, one of the founders of my firm, then probably 85 years old, was punching out some quotes. I said, "Quite a day, wasn't it, Joe?" "Yep." "Does it remind you of 1929?" "No," he said, perfectly cheerful. "Very different. There was no money in '29. Today there's still lots of it, a lot of bottom fishers. They have a way of putting nets under these stocks."

And of course, he was right. I realized that if this 85-year-old was not perturbed by the worst day in stock market history, there was no need for me to be. If you're comfortable with the stocks you own, if they're solid businesses and you haven't borrowed a lot to buy them, let the market do its worst. You don't have to do something dramatic just because the market had a bad day.

NEXT: Sell for the right reason

Last updated July 22 2008: 11:27 AM ET
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer