The wisdom of great investors #4
“Far more money has been lost by
investors trying to anticipate corrections,
than lost in the corrections themselves.”
Legendary Investor & Author
In this fourth of a series looking at the wisdom of great investors, we focus on the perils of trying to time the market.
If you’ve heard the saying ‘it’s time in the market, not timing’ this is what we’re talking about…timing the market is usually a loser’s game. It often occurs when an investor believes they can predict when the market will fall or rise and base their investment decisions on this prediction.
Fear and greed can also cause investors to rush in and out of the market at inopportune times, buying as stocks rise (or have peaked), selling as stocks fall (or have bottomed). The cost of missing the 30 best days is substantial.
To build long-term wealth, investors must remain disciplined, unemotional and focused on long-term goals in the face of inevitable market volatility.
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