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The market has been a blood bath lately and this has caused many investors to change their strategy or even pull out of the market entirely. People are worried about their investments losing money. Many people have asked me if I am selling my stocks because of the market's increasing downturns, but with all the above being said, I have not changed my investment strategy at all and the reason for this is simple; I am investing for the long term.
No matter what happens, I believe that my investing strategy is sound. I look at the companies that I have invested in, and I remind myself that my reasons for investing have not changed. The companies I'm invested in are still ones that I think are heavily undervalued. They are still companies that I believe will be a huge factor in the future, and they are still ones that I believe in the mission of. With this in mind, why would I ever sell one of my stocks because of a decrease in value?
With that being said, I have made some changes because of the market's decline. I have started investing way more than usual. I look at a company like SoFi, for instance, that is down 22% over the last month, and I remind myself that if I thought the stock was appealing last month than it should be way more appealing now that it is so much cheaper to own. Because of this, the only logical decision to make is to invest more into these companies while they are cheaper.
When I meet someone considering selling their stocks to avoid losses, I always ask them if their sentiment for the company has changed. If they say no, then I am shocked that they would ever even consider selling. It doesn't make any sense. If the reasons one bought a stock is still in play, then why sell?
I don't know how a particular stock is going to perform in the short term. I don't see how anyone could. I also don't care. It does not matter to me. What does matter is how it will perform in the long term. Will the stock beat the market over a long period of time? Is the companies mission one that I want to see fulfilled? Does the company have a clear path for growth? These are the questions that I actually find important.
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