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Below is a letter we recently sent to clients about how we are responding to the recent market selloff.

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“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”

– Benjamin Graham, The Intelligent Investor

“The investor’s primary interest lies in acquiring and holding suitable securities at suitable prices. Market movements are important to him in a practical sense, because they alternately create low price levels at which he would be wise to buy and high price levels at which he certainly should refrain from buying and probably would be wise to sell.”

– Benjamin Graham, The Intelligent Investor

Dear Client,

We are going to temporarily change our communications with you from in-depth a few times a year to more frequent but less in-depth.

Just another day at IMA

If you walked into the IMA office any day of the week when the market was down 5% to 10% (day after day), you’d see a happy, smiling team, intensely engrossed in research – building and reviewing financial models, scouring through watch lists, talking on the phone to our investment network, reading, or discussing our game plan. You’d think the market was up 10%, not down.

Now, we derive no pleasure from the pain of others, and the accounts of our portfolio managers and their extended families are riding the same roller coaster as you. But here is our perspective: We look at our portfolio and see that the market has indiscriminately marked every company down, and the coronavirus may have reduced what some of them will earn over the next … we don’t know … quarter or two, or possibly a year.