All long-term investors know that corrections are part of every bull run. But the fact is that when a correction plays out, it is not easy to be rational. At this point of time, we are in a somewhat similar situation. Money, however, is made when one is able to think beyond what is happening in the short term. So, stick with companies where the quality of the balance sheet is strong and there is little need for further debt. The reason why we are focusing on the debt part is that when interest rates are low and there is easy liquidity, history tells us that many companies tend to go overboard and take on debt.
