March 18, 2026

Through the Noise

The biggest and perhaps most destructive impediment to amassing significant long-term wealth in the stock market is a decision to impulsively act out of fear, rather than thoughtful judgement.  It is always concerning to watch our strongest stocks succumb to headline-driven uncertainty and enter periods of worrisome decline.

Although market declines are a recurring and expected part of long-term investing, that does not eliminate the emotional strain they can create. The fear of giving back accumulated gains can quickly cloud judgment, and temporary anxiety can challenge even the most rational investment plan.

As poet Shel Silverstein so aptly observed in his poem Whatif:

“Last night, while I lay thinking here,
Some Whatifs crawled inside my ear,
And pranced and partied all night long,
And sang their same old Whatif song.”

We have said this before, but it bears repeating:  “All stocks that have produced outstanding gains over extended periods of time, have also experienced significant declines on their way to those much higher prices’”   Consider Nvidia, a company with which many of you are familiar, (since it is a stock in our growth and blend portfolios).  In January 2025, the stock was above $125. By April, just four months later, it had fallen below $87.  Nvidia’s most recent high was October 29, 2025, when it rose above $212. Since then, it has been as low as $172.  All of this while earnings and future earnings projections have continued to rise dramatically.

Of course, we cannot always accurately forecast future earnings growth, price movement, or long-term demand for a company’s products or services. This is precisely why our managed portfolios are diversified across multiple businesses and industries. At the same time, we continue to seek companies we believe are positioned to deliver innovative products and services that will remain relevant and desirable well into the future.

That said, one observation remains consistent: we cannot identify a single company that has achieved substantial multi-year gains without also experiencing significant pullbacks along the way — many of them lasting longer than six or even eight months.

The most meaningful gains are often the product of patient long-term ownership.  While markets will inevitably present moments of uncertainty, temporary setbacks — though uncomfortable— have often been part of the path toward long-term progress and opportunity.