Investing plays with 2 of the oldest and most powerful human emotions, greed and fear.
These emotions distort judgment, encourage impulsive decisions, and cause people to chase hype or panic sell. As long as greed and fear dominate behavior with the potential to change their destinies with a click of a button, most investors will remain their own worst enemy
In long term investing, most people are their own worst enemy. True or false?
byu/Fun_Training6342 ininvesting
Posted by Fun_Training6342
8 Comments
True
I’m actually going to go with false here, on the basis of, if someone is *truly* long-term minded, like if that’s their mental and emotional conviction, they won’t be phased by short-term drama.
The issue is more that people are more short-term focused than they realize or give credit to.
Most people don’t collect enough information before investing in a stock. As a result, they aren’t confident in their investment and ultimately make the buy or sell based on emotion.
If you have a really strong process for evaluating a stock, you should find yourself rejecting 20 stocks for every 1 you decide to invest in.
That said, most people don’t have the time to really dig into a stock. They are working to much for that.
Investors are responsible for their own portfolios, so I don’t know how this could be anything other than true.
true! a lot of “long-term” minded people are usually performative about it.
Too many people sell their winners too fast.
Pick 5 great companies with big moats and Great management and you are doing better than over half the invested people in the world. And just stay the coarse.
True