The Main Ingredient in Value Investing = "Patience"
Why many people understand and learn about VALUE INVESTING but, there is only a small group of people is succeeded in Value Investing? Even though, Warren Buffett and many successful value investors have shared their value investing methodologies through books, audios, seminars and online. The question is always WHY? Why there is a such SIMPLE & PROFITING INVESTING strategy in this world, but there is many people didn't BENEFIT from it? The answer is SIMPLE.....It is due to HUMAN NATURE, we are born with feeling like GREED, FEAR and ANGER. As long as, we didn't resolve these THREE MAIN things, we will not be able to walk on success path of value investing in stock.
So, how do we do in order to become successful on practicing value investing. The key word is "PATIENCE". There are many people tends to get ANGRY EASILY when they see their stock is not performing well in the short term. They might even BLAMING the company, CEO, broker, friends or etc. In the meanwhile, if the feeling of fear is kicking in, what will they do, they will SELL away their shares when stock price is depreciating in short term. Once, patience is not taking care or in place, value investing strategy will not be performing well.
In a nutshell, we should always CHECK WITH OURSELVES, do we;
1) WHY do we BOUGHT A SHARE?
2) WHY are we SELLING A SHARE?
3) Are we INVESTING (long term) or TRADING (short term)?
Understanding about why do we react to a certain stock either buying or selling can make us more stable and steady when comes to practice VALUE INVESTING.
Together, let's learn from Martin Zweig quotes.
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