How does Warren Buffet cope with the market fluctuations? Below is Buffet’s sharing in one of his annual report, which I read and took note from (as a short version). It’s worth sharing, especially at the end of this week:
Market quotation comes from a fellow Mr. market.
He is my partner in a private business. Both of us are the shareholders of the private business.
Every day Mr. Market gives me a quotation. Although our business is stable, his quotes fluctuate because he has emotional problems.
When he is optimistic, he quotes high, because he fears I snap up his interest. When he is depressed he quotes very low since he is terrified that I will unload my interest on him.
Mr. Market doesn’t mind being ignored.
Mr. Market is here to serve me, not to guide me.
If he shows up in particularly foolish mood, I can either ignore him or taking advantage of him. But it will be disastrous if I fall under his influence.
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