The Warren Buffett Way: The World’s Greatest Investor

Managing Your Portfolio 175 change in any one of them is all the more noticeable and has greater overall impact. The ability to ...

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177 11 The Psychology of Money T he study of what makes us all tick is endlessly fascinating. It is es- pecially intriguing to m ...

178 THE WARREN BUFFETT WAY market is, by def inition, the collective decisions made by all stock pur- chasers, it is not an exag ...

The Psychology of Money 179 the stock market, but themselves. They may well have superior abilities in mathematics, f inance, an ...

180 THE WARREN BUFFETT WAY Buffett believes that too many of today’s investors feel a need to pur- chase too many stocks, most o ...

The Psychology of Money 181 good companies at bargain prices. Pessimism, he says, is “the most com- moncauseoflowprices....We wa ...

182 THE WARREN BUFFETT WAY him or take advantage of him, but it will be disastrous if you fall under his inf luence. “The invest ...

The Psychology of Money 183 mental habit that has served him well. “Personally, I’ve gotten so that I now use a kind of two-trac ...

184 THE WARREN BUFFETT WAY pneumonia with 90 percent conf idence when in fact they are right only 50 percent of the time. Conf i ...

The Psychology of Money 185 given periodic performance measured in f ive-year time periods. Thaler then asked each group to allo ...

186 THE WARREN BUFFETT WAY change. We tend to mentally put money into different “accounts,” and that determines how we think abo ...

The Psychology of Money 187 it seemed like a simple task. By using interviews and questionnaires, they could construct a risk pr ...

188 THE WARREN BUFFETT WAY own research, rather than in luck. His actions derive from carefully thought-out goals, and he is not ...

189 12 The Unreasonable Man G eorge Bernard Shaw wrote, “The reasonable man adapts himself to the world. The unreasonable one pe ...

190 THE WARREN BUFFETT WAY mouths. Even now, with so many money managers unable to add value to client portfolios, it is easy to ...

The Unreasonable Man 191 a wide variety of businesses in many industries separates Buffett from all other professional investors ...

192 THE WARREN BUFFETT WAY Buffett believes it is foolish to use short-term prices to judge a com- pany’s success. Instead, he l ...

The Unreasonable Man 193 The irony is that Buffett’s success lies partly in the failure of others. “It has been helpful to me,” ...

194 THE WARREN BUFFETT WAY outstanding business for a number of years, what happens in the market on a day-to-day basis is incon ...