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Wealth Inspiration Part 4
A quick bit of wisdom to keep you going.
Wisdom can often come in small packages, and wisdom about building wealth is no different.
Today’s quote is again from Warren Buffett, one of the wisest of all investors:
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
This is one of Buffett’s most famous quotes.
Here he outlines the fundamental difference between investors that beat the market and investors that trail it.
Unfortunately, most investors trail it because they buy high and sell low:
- If you buy what is popular, you will pay high prices.
- If you sell what is unpopular, you may well take a permanent loss of capital.
Following the crowd is not what builds wealth.
What do you do when the market drops 10% in a week? Do you sell out of fear? Do you stay steady? Do you buy more?
What do you do when a hot stock like Tesla jumps 20%? Do you buy from a fear of missing out? Do you hold? Do you sell?
