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When stock prices are falling, listen to Warren Buffett

As reported by Business Insider, stocks may be nearing a bear market, but now is not the time to panic:

At times like these, it's important to remember the oft-repeated advice of Warren Buffett: "Be fearful when others are greedy and greedy only when others are fearful."

Buffett, the billionaire investor and founder of Berkshire Hathaway, reiterated some of his best advice for sustaining wealth during a bear market in his 2016 letter to shareholders: stay in the market and buy at a bargain.

Buffett wrote:

"During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy. It will also be unwarranted. Investors who avoid high and unnecessary costs and simply sit for an extended period with a collection of large, conservatively-financed American businesses will almost certainly do well."

In other words, don't fall victim to widespread panic and begin selling off stocks, because wealth-generating investments are long term.

"American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead. Innovation, productivity gains, entrepreneurial spirit and an abundance of capital will see to that ." he wrote.

Most importantly, it's impossible to predict when economic crises will happen, Buffett said, but they're inevitable.

This is the essence why we take care to build client portfolios with good quality companies that maintain the test of time.  One never knows what lies around the corner – quality allows you to have faith that your investments are well positioned to withstand inevitable market volatility and corrections.