A great quote about investing from a legendary investor.
Buffett is considered a legendary investor because he has the right temperament (amongst many other things). So he was really able to ‘buy low and sell high’.
On the other hand, I have tried to make money by buying and selling shares – but have not been nearly as successful 🙂
Buy low / sell high sounds straightforward to do, but it is difficult to see a stock you invested in drop 30% and not panic. And then not to throw in the towel and sell when it drops to 40% or 50%. Holding on through time periods like this really tests your temperament.
Hence, now my portfolio is primarily comprised of low-cost stock and bond index funds. I still invest in stocks, but it is only 20% of the portfolio.
I will tell you how to become rich. Close the doors…
Be fearful when others are greedy. Be greedy when others are fearful.
Warren Buffett
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