Using Short-Term Market Sentiment to Your Advantage- Buffett Example

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=””][vc_column_inner][vc_column_text]Understanding market psychology is one of the most essential characteristics to achieving long-term investment outperformance. Firstly, the vast majority of market participants are focused on short-term performance. If you watch CNBC or Bloomberg, you will see this attitude on full display. There are no shows on either network dedicated to long-term investing. How bizarre is that if you really think about it? The reality is that these networks want daily viewers so the advertisers are happy, so there is a vested interest in promoting short-term trading based on news, momentum, technical analysis etc.[/vc_column_text][vc_empty_space height=”30px”][vc_column_text]What I mean by this is that many people avoid an investment that is obviously undervalued dramatically, because they believe it may drop more due to some short-term issue. Conversely, they will buy a stock that they believe to be overvalued from an intrinsic value standpoint, because they think it will continue to go up short-term. This is really the definition of speculation.[/vc_column_text][vc_empty_space height=”30px”][button target=”_blank” hover_type=”default” text=”READ REPORT” link=””][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]