IFB331: 6 Ways to Avoid Buying High and Selling Low

Feb 8, 2024

48:20

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Welcome to The Investing For Beginners Podcast, I'm Dave and with me is Andrew. In episode 331, we're diving into the crucial role of conviction in investing. Learn why knowing the reason behind your investments can help you stay the course during market volatility and aid in building wealth over time.

We'll share tips on how to develop and maintain your conviction, even when the market tests your resolve. Discover insights on the pitfalls of overconfidence and the wisdom of humility.

Andrew will discuss his long-term holding approach focused on quality, and I'll emphasize understanding a company's true value. We'll also touch upon the importance of systems like dollar-cost averaging and strategies to prevent rash decisions, including insights from our experience with Berkshire during uncertain times.

Join us as we explore the power of informed investing decisions and building a steadfast investment philosophy. Let's get started!

00:00 Understanding the game, investing wisely, avoiding mistakes.

04:02 Consistency in investment and learning from mistakes.

07:26 Focus on behavioral psychology in business success.

12:53 Write down your understanding to handle stress.

15:18 Repeated deep dives reveal valuable missed details.

17:52 Understanding outward vs inward looking investment strategies.

22:09 Maintain confidence and patience in investing strategy.

26:03 Understanding your limits, sticking to your plan.

28:45 Don't follow the herd, focus on opportunities.

33:09 Slow down, create systems for rational decisions.

34:51 Company seemed strong despite pandemic challenges and price.