The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.
Interpretation
An investor's success depends more on their emotional stability than their intelligence.
This quote emphasizes that in the world of investing, maintaining a balanced and calm temperament is more crucial than simply having a high intellect. An effective investor must navigate the emotional highs and lows of the market without getting swayed by either the prevailing sentiment or the public opinion, focusing instead on rational decision-making.
In practice
During a finance seminar, when discussing the traits of successful investors.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
Your people smarts will prove ten times more valuable than all the book smarts you can't get.
The backslider likes the preaching that wouldn't hit the side of a house, while the real disciple is delighted when the truth brings him to his knees.
My falcon now is sharp and passing empty, and till she stoop she must not be full-gorged, for then she never looks upon her lure.
Give it an understanding, but no tongue.
We have all got to exert ourselves a little to keep sane, and call things by the same names as other people call them by.
The most unhappy people in the world are those who face the days without knowing what to do with their time. But if you have more projects than you have time for, you are not going to be an unhappy person. This is as much a question of having imagination and curiosity as it is of actually making plans.
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