Investor Emotions and Investing

Oct 16, 2018 | Nick Dodds


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Have you ever been in a conversation with someone like your significant other, a parent, or a child and they ask you to do a task that is quite simple and yet you have this incredible feeling of being overwhelmed.  For example each Spring and each Fall I get a call from my Mother with a request to "transport" the large green plant from the guest bedroom to the backyard and vice-versa.  So recently it was time to "transport" the large green plant from the backyard back to the guest bedroom.  On the surface the task is not difficult to do.  Yet when you add this task onto all the other tasks that need to be done you reach a tipping point where you simply say "I can't do it right now!"  To understand the emotion of feeling overwhelmed took many years for me to truly appreciate. 

 

To this end this is where I learned that a person who says that they don't have the time to do something is "code" for "not now".  The task can wait.  Now going back to my Mom's example about the plant she is one very smart lady.  She anticipates my response and proceeds to tell me that the task has to be done right away or the plant will die from frost!  Oh yes, we really can learn a great deal from our parents.

 

So one afternoon I go to my office mail slot and I pick up the day's "stuff".  Included was this large newspaper that was produced by CI Investments.  I was intrigued enough to look at the September publication and I came across a really interesting article.  Click here to read the article

 

My reason for "blogging" about emotions is that this is actually the common denominator across all of us who invest their hard earned savings. One of the famous investors of our time, Warren Buffett has a great saying:  "Investing is simple but it is not easy."  I believe that being able to control one's emotion is likely to be the greatest challenge for all of us.  I will conclude that to face this challenge one needs to start by acknowledging that we all have emotions and if left unchecked the consequences can be severe.  I hope you will enjoy this article and keep it by your side as time continues to march on.