The stock market has had a volatile year. But for the average person, shifts in the market, even dramatic ones, shouldn't be cause for panic. In fact, legendary investor Warren Buffett says that the best thing you can do when the market tanks is to ignore it.
"The money is made in investments by investing and by owning good companies for long periods of time," the Berkshire Hathaway CEO told CNBC in 2016 amid wild market fluctuations. "If they buy good companies, buy them over time, they're going to do fine 10, 20, 30 years from now."
Billionaire Ray Dalio agrees. Though it might be tempting to sell when the market drops, he says, you shouldn't base your investing decisions on fear or emotion.
"You can not possibly succeed that way," Dalio said at the Harvard Kennedy School's Institute of Politics. "You've got to do the opposite. It's when you're not scared you probably want to sell, and when you are scared, you probably want to buy."