Well if you want to be like this man loaded with money, you have to have the following characteristics:
1.True Investors are Calm -
According to Buffett, unless you can watch your stock holding decline by 50 percent without becoming panic stricken, you should not be in the stock market. In fact, he adds as long as you feel good about the business you own, you should welcome lower prices as a way to profitably increase your holdings.
True investors also remain calm in the face of what we might call the mob influence. When one stock or industry or one mutual fund suddenly lands in the spotlight, the mob rushes in that direction. The trouble is, when everyone is making the same choices because "everyone" knows its the thing to do, then no one is in a position to profit. His caution seems to be this: True investors don't worry about missing the party; they worry about coming to the party unprepared.
2.True Investors are Patient -
Instead of being swept along in the enthusiasm of the crowd, true investors wait for the right opportunity. They say no more often than yes. Buffett learned that the ability to say no is a tremendous advantage for an investor.
3.True Investors are Rational -
They approach the market, and the world, from a base of clear thinking. They are neither unduly pessimistic nor irrationally optimistic; they are, instead, logical & rational.Buffett finds it odd that so many people feel optimistic when market prices are rising, pessimistic when prices are going down. Sell at lower prices & buy at higher prices - not the most profitable strategy.
True investors are pleased when the rest of the world turns pessimistic, because they see it for what it really is: a perfect time to buy good companies at bargain prices.
Buffett says "Pessimism is the most common cause of low prices. We want to do business in such an environment, not because we like the pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
(Source: The Warren Buffett Way by Robert G. Hagstrom)
True investors also remain calm in the face of what we might call the mob influence. When one stock or industry or one mutual fund suddenly lands in the spotlight, the mob rushes in that direction. The trouble is, when everyone is making the same choices because "everyone" knows its the thing to do, then no one is in a position to profit. His caution seems to be this: True investors don't worry about missing the party; they worry about coming to the party unprepared.
2.True Investors are Patient -
Instead of being swept along in the enthusiasm of the crowd, true investors wait for the right opportunity. They say no more often than yes. Buffett learned that the ability to say no is a tremendous advantage for an investor.
3.True Investors are Rational -
They approach the market, and the world, from a base of clear thinking. They are neither unduly pessimistic nor irrationally optimistic; they are, instead, logical & rational.Buffett finds it odd that so many people feel optimistic when market prices are rising, pessimistic when prices are going down. Sell at lower prices & buy at higher prices - not the most profitable strategy.
True investors are pleased when the rest of the world turns pessimistic, because they see it for what it really is: a perfect time to buy good companies at bargain prices.
Buffett says "Pessimism is the most common cause of low prices. We want to do business in such an environment, not because we like the pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
(Source: The Warren Buffett Way by Robert G. Hagstrom)
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