Famed Investors Like Warren Buffett Warn That Investing Takes Mental Toughness. 3 Tips for Investing Logically, Not Emotionally.
You might think that successful investing takes immense knowledge of the markets, decades of experience, or even a pile of cash to get started. But one of today's most famed investors points to none of the above. Warren Buffett, chairman of Berkshire Hathaway, has beaten the market for 59 years, generating a compounded annual gain of nearly 20% compared to the 10% increase for the S&P 500. And one of the big elements that got him there was mental toughness."The most important quality for an investor is temperament, not intellect," Buffett once said. Another famous quote from the billionaire: "We don't have to be smarter than the rest. We have to be more disciplined than the rest."What does this mean exactly? An investor, by keeping calm through any market environment, is more likely to make smart decisions. And this is particularly important at moments like right now, with uncertainty roiling the stock market. President Donald Trump's recently announced tariffs on imports have prompted concerns about the impact on earnings and the overall economy. And this has driven declines in the Nasdaq, the S&P 500, and the Dow Jones Industrial Average in recent weeks.Continue reading
You might think that successful investing takes immense knowledge of the markets, decades of experience, or even a pile of cash to get started. But one of today's most famed investors points to none of the above. Warren Buffett, chairman of Berkshire Hathaway, has beaten the market for 59 years, generating a compounded annual gain of nearly 20% compared to the 10% increase for the S&P 500. And one of the big elements that got him there was mental toughness.
"The most important quality for an investor is temperament, not intellect," Buffett once said. Another famous quote from the billionaire: "We don't have to be smarter than the rest. We have to be more disciplined than the rest."
What does this mean exactly? An investor, by keeping calm through any market environment, is more likely to make smart decisions. And this is particularly important at moments like right now, with uncertainty roiling the stock market. President Donald Trump's recently announced tariffs on imports have prompted concerns about the impact on earnings and the overall economy. And this has driven declines in the Nasdaq, the S&P 500, and the Dow Jones Industrial Average in recent weeks.
