Market Correction? Why don't you "Buy It Like Buffett"?

Markets in the U.S. dropped 10 percent at one point in the past weeks pushing into correction territory following the release of data that sparked fears over a stronger than expected uptick in inflation.

Are you worried about the recent market correction and the future of your portfolio? It may be wise to follow the advice of legendary investor Warren Buffett.

Buffett was asked what he would do if the market dropped from here. He famously replied that if he saw a sale in his favourite store, he would go and buy some more of the stuff he liked.

Market corrections are often seen as a buying opportunities for many investors as the corrections quickly reduce the price of equities, creating the equivalent of a sale. But, remembering Buffett's famous line from 2008, whether talking about socks or stocks, he likes buying quality merchandise when it is marked down.

So, if you have a long term view and are investing for a 10 year+ horizon, now that markets have slightly come off their recent highs, and given that economic growth is strong and there are good prospects for solid earnings, it is a great moment to seize the opportunities in the stock market.

There was a great article in MarketWatch that showed the Dow's tumultuous history in one chart. Looking at the chart, it is easy to see that while corrections seem dramatic when they are happening, over the long term they look like buying opportunities, just like Warren said.