LTBH shouldn't be paying attention to short-term gains and losses. Warren Buffett, the famous Omaha value investor, and John Bogle, the founder of the Vanguard Group of mutual funds, have been saying the same thing about bonds for years. But as investors, we hear what we want to hear. LTBH is on the run, and he s looking for reinforcement for his stock-market fear. Failing to consider the emotional cost of investing.
Most people hate to lose money.
Intellectually, they can entertain the idea of watching the market go down with the smug knowledge that it will head back up. That is my hard-earned money. And it's going up in flames. I must put a stop to this. If we're to grow as investors, we ve got to recognize up front that all of these things will happen, that we will get emotionally involved and that we ve got to control it.