2026 may see more corrections. Focus on owning the correct business – & the 9 basic principles of investing in mid- and small-cap stocks

Investors tend to get divided into two distinct sets during extended corrections. The first justify buying wrong stocks by describing themselves as “long-term investors”. The rest, genuine long-term investors, focus on the correct businesses. “Correct business”? Yes, one with a record of growth; which does not require frequent capital infusions; and where income is shared with minority investors. As geopolitics rock the global equity markets, here’s what investors must remember: Corrections are part of the market. They happened in 2024 and 2025, and will happen in 2026. Also, stock selection is the key given high valuations. Finally, manage behavioural risk. And that is something investors have to work out on their own.