When markets drop, investors convince themselves everything is falling apart. Step back. Rebalance when assets get cheap. Seasoned investors managing other people's money have to stay rational and act responsibly, even under stress.
Chapters
If you spin yourself into this place where you're like, this is the end of the world scenario, just step back and think about that. Who cares, right? What— who cares about your investments? So you have to take a pragmatic approach, which I think I did, even with all the stress I had. I was like, we have to do the right things. We have to assume this isn't the end of the world, that we're going to recover. Things have gotten so cheap, we need to rebalance. All those kinds of things that you do when you've done this for a while and you're a disciplined investor and you've managed institutional capital and people are relying on you, you can't lose your head and go crazy, right?