Over the past 30 years, the S&P 500 has produced average total returns of about 9% per year. This not only includes the current correction, but the financial crisis, dot-com bubble, and 1987 crash, which all occurred during this time period. The point is, it's safe to say no matter what's happening now, stocks still perform well over the long run.
However, the average investor has produced an average annual total return of less than 2% during the same time period. How can this be?
The problem is that investors are people, and people are emotional. When stocks fall sharply like they've done recently, many people panic and sell in fear of their stocks going down even more. And, when the market is going up and up, that's when investors are most willing to throw their money in. In other words, we all know that the point of investing is to buy low and sell high, but emotion causes investors to do the exact opposite.
......same thing w buffet and i would say. Im like w buffet but with 99.9% less money and i look at charts, he researches companies in person/corporate raider sometimes.
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