The Daily Buffett

← PreviousIndexNext →

The Patience of the Investor

January 1st

The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.

Warren Buffett

In the realm of investing, intellect alone won't bring success. It's the measured, patient investor who prevails in the long run, not the one who revels in the thrill of being aligned or against the market's latest trends.

This is not a call to abandon intelligence or education. Instead, it's a reminder that the ability to resist the emotional ups and downs of the market is priceless. When markets are chaotic, keeping a steady hand on the tiller is more useful than the sharpest analytical mind.

Resisting the pull of the crowd, whether it's towards euphoria or despair, is perhaps the most challenging skill to master. The investors' playground is not a stage for showcasing intellectual prowess but a test of emotional resilience.

Investing is a marathon, not a sprint. It calls for a temperament that can weather storms without losing sight of the finish line. It's about making consistently rational decisions, regardless of the emotional roller coaster ride that is the stock market. Remember, the road to investment success isn't paved with flashy trades or contrarian bets, but with calm, calculated decisions made in the face of market turmoil.

Join the newsletter to get the daily reflection delivered to your inbox.

Copyright © 2023 by Scott Sansovich