Warren Buffett explains how to deal with market volatility

In order to invest properly and make money over time, Not only do you have to know what property to buy and when, but you also have to control your emotions. Because the market is very volatile. To survive in the financial environment, learn to deal with the ups and downs of the stock market.

in the book Warren and Charlie: Lessons from investing, trading and livingcollected dozens of Warren Buffett and his friends and allies Charlie MungerTycoon explained How to Really Master the Art of Not Reacting Unnecessarily to Price Changes,

“You have to remember that Mr. Market is our bipolar partner. He offers you buy or sell prices, he doesn’t tell you what is something. Also, when the market is in a strong downtrend, you should remember , the cheaper the better”Buffett wide.

To illustrate his stance, Dear Investor compared food to food. “If you love hamburgers and they come down in price, so much the better. It doesn’t matter if you pay more the day before. You’ll be buying hamburgers for the rest of your life, so the cheaper the better.” Same Item in Stock “hold.

I added: “If you’re looking to save some money over the next 5 years, you should see the stock market fall. But a lot of investors don’t understand that they’ll buy stocks for a few years and still be happy when the stock goes up.” sad. When they were about to buy a “hamburger”, they were happy. It doesn’t make any sense. “,

after, He stressed that it is impossible for investors to make money in the stock market if they go to bed thinking about the price of the stock every night.,

Both he and Charlie consider the value of their business, not the share price, because “Considering price is dynamite, which means you think the market knows more than you know”, “If so, then you should not invest in stocks. The market is there for you, not to guide you”he stressed.

For its part, Charlie Munger emphasizes the importance of developing a temperament that allows you to act without worry.That’s why “Anxiety and fear are the main enemies of long-term returns”, “If you’re rational, even opportunistic, in a panic situation, you’ll do fine”he concluded.