Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) (NYSE: BRK-A) has produced average returns of 21.6% per year over the past 50 years, while the average investor garnered about 2% over the past 30. What's the difference? Easy -- the average investor gets nervous when prices fall and sells at a loss. And, when they see everyone else making money on "it" stocks like Tesla and Amazon.com, they buy when prices are already high. In other words, common sense tells us that the goal of investing is to buy low and sell high, but many investors do the exact opposite.
He is politely saying some people trade on emotions and are completely wrong. Some people create bubbles and burst together.
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