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3/18/13 The Star Online: Are you scared to invest? Billionaire Warren Buffett's tips on how to overcome it.

Th
eStarOn
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ne>Bus
ine
ss
Monda
yMa r
ch18
,2013

Ar
eyo
usc
are
dtoi
nve
st?Bi
l
li
ona
ir
eWa
rre
nBu
ff
et
t'
sti
psonh
owt
oov
erc
omei
t
.

Fi
nan
cia
lSn
ack
s-ByJ
oyc
eCh
uah

Fe
ari
sac
ommone
mot
i
oni
nou
rli
vesa
ndi
nma
nyi
nst
anc
es,i
tpr
ote
ctsu
sfr
omda
nge
r.

Howe
ver
,in
ves
tor
s'f
earma
ybemo
repu
nis
hin
gth
anpr
ote
cti
ve,wr
it
esJ
OYCECHUAH.

IHAVEo f
te
nsa
idt
hi
sinmys
emi
nar
s:
Man
yofu
swa
ntt
oin
ves
tbu
taf
ewofu
sar
eNOTpr
epa
redt
obe
i
nve
sto
rs.

Thecommo nquest
i
onamongin
vest
orsi
so f
t
e n
Howmu c
ha rewemaki
ng?
Tr ue
,pr ofi
tsar
eaf
teral
lthe
benc
hma r
kwes etf
orasuc
cessf
uli
nves
tmentpl
an.However,man
yoft
enchoosetoforgett
hati
ntheproces
sof
se
ekingpr
ofi
ts,t
her
ewil
lbeti
mesofunre
ali
sedl
ossesa
ndtimesofun
fav
our
a bl
eretu
rn sduetoe
ventsbeyond
any
one'scont
rol
.

Eveni
fiti
saneventwhi
cho
netri
e st
op r
edi
ct(s
uchasthegener
alel
ect
iondate
!) ,manyf
orgett
hatsuc
he v
ent
s
ar
ejustt
emporar
ya n
dnotc
atas
trophi
c ,wher
etota
landirr
ecover
abl
elosscannoth a
ppen.Thetes
tofa
su
ccess
fuli
nve
stori
swhent
herubb e
rh it
sth
eroad'tha
tis,whenfa
cedwi t
hal ossposi
t
ion,ca
ny oupre
vent
your
sel
ff
romreacti
ngan
dal
lowi
n gfeartopushyoutosel
lyourl
ossposit
i
ons?

Fea
rprot
ect
susf
romdang
er,a
sinaf
igh
torfl
i
ghtsi
tu
ati
on.Buti
nve
stor
s'f
earmaybemor
epu n
ish
ingt
han
pr
ote
cti
vebec
aus
eitpr
epa
resust
ore
actan
dc han
gesourper
spect
i
veoftheext
ern
ale
ven
ts.

Iha
veoft
ens
aidt
hatt
heac
ronymF.E.
A.R.s
tandsfor
Fals
eEvi
denc
esAppe
a r
in
gReal
,asf
eard
ele
tes
,
di
st
ort
sandg
ener
al
ise
sev
entswhi
chmayar
en otasadver
seast
heys
eemoraswear
etold.

I
tisnowo n
derth
atWarrenBuff
et
tiso
neofmos
tsu
ccess
ful
inv
est
orsi
nthewor
ld.Heprac
ti
seswhath
ete
rme
d
a
s i
nact
i
vit
yasani
nve
stor.I
nst
eadofre
act
i
ngt
ofea
r,Buf
fet
tsay
s,i
nve
stor
ssh
ou l
dle
arnt
obec a
lmand
i
nact
iv
e.

Hi
sth
oug
htsa
rebe
sts
umme
dupi
nfou
rofh
isf
amou
swi
sequ
ote
s:

The stock market is designed to transfer money from the active to the patient.

Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.

I never attempt to make money on the stock market. I buy on the assumption that they could close the
market the next day and not reopen it for 10 years.

My success can be attributed to inactivity. Most investors cannot resist the temptation to constantly
buy and sell.

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3/18/13 The Star Online: Are you scared to invest? Billionaire Warren Buffett's tips on how to overcome it.

1
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