This Too Shall Pass

"In the short run, the market is a voting machine. In the long run, it is a weighing machine."

— Benjamin Graham

When the world suddenly feels a lot more dangerous — when oil prices spike, airspace closes, and the Dow falls 400 points in a day — every investor asks the same question: Should I do something?

In this month's episode of Habits of Great Investors, we give you the most honest, clear-eyed answer we can — one grounded in history, not headlines. We share the single habit that separates great investors from everyone else in moments exactly like this one.

What history tells us

Strategists at the Carson Group compiled the S&P 500's returns following 40 major geopolitical shocks over the last 85 years — from World War II to 9/11 to the pandemic. The average loss one month after these events? Less than 1%. Six months later, the average gain was 3.4%. One year later, the market was almost always higher.

The investors who sold in 2008, in March 2020, and again in April 2025 locked in losses and missed the recoveries that followed. The investors who did nothing — who stayed the course — were better off every time.

The habit: The prepared mind

Great investors have thought through in advance the kinds of shocks that can rattle markets. They've made peace with the fact that wars, recessions, and crises will come. They've done their lifeboat drills before the ship leaves the harbor. When turbulence arrives, they're not surprised — and they're not paralyzed. That's not a gift. It's a discipline. A habit. And it's available to any investor willing to do the work.

Helping those you care about

The purpose of our Great Investors series is to help you become an outstandingly successful investor by following the principles of patience and discipline required to prosper as an equity investor. No doubt, "Mr. Market" periodically tests that patience and discipline by subjecting investors to emotional swings, possibly causing many to make a big mistake. Only those who faithfully adhere to a rock-solid investing philosophy will pass those tests.

Successful investing, while always fundamentally simple, will never be easy. You may have a family member, colleague, or friend who perhaps has not fared as well recently, and who you feel might have benefited from the sort of advice you're receiving. Should that be the case, we would certainly appreciate your introducing us to them. We very much enjoy working with you and would welcome the opportunity to offer the same level of planning and service to the people you care about.