If you ever dreamed about becoming the next Warren Buffet, you will want to read on…
Have you ever wondered how the Warren Buffets of our generation built up their massive fortunes? Why, when some investors lost their life savings during the COVID crash of March 2020, did others like Bill Ackman make billions?
The answer is simple. The smartest investors understand human emotion, and how to exploit it.
Behavioral finance is becoming more and more relevant to today’s market conditions. This concept states that people make costly mistakes with their money due to emotional biases, cognitive errors, and lack of discipline. The smartest investors from the past and the present always understood this. It is why Warren Buffet always said to be greedy when others are fearful.
Market traps happen every minute and every hour of every trading day. People largely behave as a herd, and act on impulses and emotion. People buy high, and sell low, and make rash decisions without ever questioning WHY.
The smartest investors know this, and exploit this. They act on patience and logic, rather than emotions. While investors fled the market in 2008 and the banking sector crashed- what do you think Warren Buffet did? He practically purchased Bank of America and made a fortune. When Bill Ackman went on national TV in March and told investors that “hell was coming,” what do you think he did? Completely played on people’s emotions, turned back around, and made billions.
“How Billionaires Used Fear to Build a Fortune”
Will change the way that you think about finance. If you want to be a billionaire, you have to stop being scared, and start thinking like one.