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The Strength of Restraint

October 20th

You will continue to suffer if you have an emotional reaction to everything that is said to you. True power is sitting back and observing things with magic. True power is restraint. If words control you that means everyone else can control you. Breathe and allow things to pass.

Warren Buffett

In investing, emotional reactions can often lead to our downfall. A hasty decision spurred by a market rumor, or a panic-driven sell-off in the face of a market dip - these impulsive acts can severely damage our investment portfolio.

True power in investment lies not in immediate reaction, but in patient observation and calculated restraint. The most successful investors are those who, amidst the market noise, manage to maintain a calm demeanor, absorb the information at hand, and make careful, informed decisions.

This type of restraint is not about being passive or unresponsive. Quite the contrary, it is a proactive approach that involves filtering out market noise, focusing on the fundamental aspects of an investment, and resisting the urge to act on every piece of news.

In the face of market volatility, breathe. Let the impulse to act hastily pass. Exercise restraint and remember that true power in investment—and in life—comes from observing and analyzing, not from reacting to every stimulus. The most rewarding moves are often not the loudest or the most lauded, but the ones carried out with patience, thoughtfulness, and composure.

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