“If you're not willing to react with equanimity to a market price decline of 50% two or three times a century, you're not fit to be a common shareholder.”

🇺🇸 Charlie Munger

Vice Chairman, Berkshire Hathaway

Severe market declines are a normal part of equity investing, not an aberration. If you cannot stomach a 50% drawdown without panic selling, you should reduce your stock allocation before the next crash arrives.