Warren Buffett invests like a Girl – Final Part

13^th June 2020

Warren Buffett invests like a Girl – Final Part

Dear Fellow Travellers,

Namaste From Hitesh! We have started Buffett Invest Like A Girl Learning Series from the last 3 days. Today we will deal with all the pending rules so that you can think about them at the weekend.

1.    Be less optimistic, and therefore more realistic, than their male counterparts

·      Be level headed about your investments and the market at large.

·      Learn not to be excited by market swings to the upside or devastated by market drops.

·      You’re in charge of Mr. Market. Don’t let him boss you around.

·      Quoting Buffett, “When investing, pessimism is your friend, euphoria the enemy.”

2.   Put in more time and effort researching possible investments, considering every angle and detail, as well as considering alternate points of view

·      Read, read, read.

·      Don’t forget about your circle of competence.

·      Avoid confirmation bias—seek out information that contradicts your conclusions, not just information that reinforces them.

3.   Be more immune to peer pressure and tend to make decisions the same way regardless of who’s watching

·      Be willing to be contrarian, as uncomfortable as it may be.

·      Take Buffett’s words to heart: “Be greedy when others are fearful, and fearful when others are greedy.”

·      Live by your own Inner Scorecard.

4.   Learn from their mistakes

·      You’re going to make mistakes. We all do. So, don’t beat yourself up when you slip up.

·      Assess what happened. Did you miss something? Or did market conditions change?

·      Think about what you can reasonably do differently in the future. If you bought stock in a company you didn’t truly understand, for example, vow not to do that again.

5.    Thanks to good old biology, they have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles.

What Next?

The purpose of this series was to share the wisdom of Buffett. If you wish you can read them and think over it at the weekend and beyond.

Happy Investing.

Follow me on Twitter @hiteshmparikh / WhatsApp – +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh