Philosophy of Great Investors

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”

Benjamin Graham. Father of Value Investing

Avoid Self-Destructive Investor Behavior

Chasing the hot-performing investment category or making major tweaks to your long-term investment plan can sabotage your ability to build wealth. Instead, work closely with your financial advisor to outline your long-term goals, develop a plan to achieve them and set the expectation that you will stick with that plan when faced with difficult periods for the market.

 

“History provides a crucial insight regarding market crises: They are inevitable, painful, and ultimately surmountable.”

Shelby M.C. Davis. Legendary Investor

Understand That Crises Are Inevitable

Crises are painful and difficult, but they are also an inevitable part of any long-term investor’s journey. Investors who bear this in mind may be less likely to react emotionally, more likely to stay the course, and be better positioned to benefit from the long-term growth potential of stocks.

 

“Despite inevitable periods of uncertainty, stocks have rewarded patient, long-term investors.”

Christopher C. Davis. Portfolio Manager, Davis Advisors

Understand While Painful, Crisis Creates Opportunity

Low prices can increase future returns. Investors who bear this in mind are more likely to endure hard times and be there to benefit from the subsequent periods of recovery.

 

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.”

Peter Lynch. Legendary Investor and Author

Don’t Attempt to Time the Market

Investors who understand that timing the market is a loser’s game will be less prone to reacting to short-term extremes in the market and more likely to adhere to their long-term investment plan.

 

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Mind Kinesis Research Team
Investment in Stocks Blog
Value Investing Academy – the Warren Buffet Way
https://www.investment-in-stocks.com