The stock market has a long history of humbling investors. The Investment Masters understand the need for humility. Ordinarily, when investors have had a good run they risk getting over-confident and letting down their guard, only to have the stock market deliver them losses.
Many of the Investment Masters maintain a psychology of fear.
“It is better if you invest scared, if you worry about losing money, if you worry about being wrong, if you worry about being overconfident because these are the things you want to avoid. They should be foremost in your mind.” Howard Marks
“We are big fans of fear, and in investing it is clearly better to be scared than sorry.” Seth Klarman Continue Reading →