Quality Before Volatility

A little rally by the market always feels good on a Monday. All three indexes finished green after a low open, leaving the aggressive market open bulls very happy. Some good things happened today, such as Apple climbing considerably after it announced its technology plans for the year at its WWDC. But today I will talk about a long term approach to the stock market. Many investors say to buy diversely and to not “put all your eggs in one basket.” If I had to make a choice, I would say that I agree with this ideology, but sometimes I wonder if just one of the 10 stocks I am in takes off, I would’ve just been better off putting all my money in that one. Ryan Cohen, millionaire investor and founder of Chewy says that he only has his money in two stocks: Apple and Wells Fargo. Today, his stake in Apple is worth 550 million dollars! He says that he truly believes in the growth of Apple because of how the iPhone has transformed human life. Despite the money that Apple has made him, Cohen is always hoping for the price of it to drop because he wants to buy it at a discounted price. This thinking is how I believe people should look at all stocks they believe in long term; to not let poor news and volatility cause you to sell. Instead, think of it as an opportunity to buy more if you can. With a dividend paying stock, the more shares you have the better, regardless of how the stock moves. A lot of patience must be had to stay strong during times of drops, but in the stock market it is the name of the game.

-Darnel Shillingford

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