During my turn at the helm at Magellan, on the nine occasions when the average stock lost 10 percent of its value the fund sank deeper than the market, only to rise higher than the market on the rebound—as I’ll explain in more detail later. To benefit from these comebacks, you had to stay invested. In letters to the shareholders, I warned of Magellan’s tendency to get swamped in choppy waters, on the theory that when people are prepared for something it may disturb them, but it won’t unnerve them. Most, I think, remained calm and held on to their shares. Some did not. Warren Buffett’s
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