The Stupidest Reason to Buy and Sell – HappyRich Investor

The Stupidest Reason to Buy and Sell

Amar Pandit , CFA , CFP

September 15, 2023 | 2 Minute Read

Warren Buffett gave the answer to the first part of the headline…

What do you think is the reason?

He wrote, “The stupidest reason in the world to buy a stock is because it’s going up.”

Couldn’t there have been a better answer?

I don’t think so…The truth is that this applies to every investment whether it’s a stock, bond, mutual fund, or any other.

What do you think is the stupidest reason to sell?

I know you got this one…

The stupidest reason to sell is because the investment price is going down.

Don’t you think so?

A sketch comes to mind as I write this…

Some other stupid reasons to buy…someone else bought it and made money, I got a tip from a fellow who knows what he is doing, overconfidence and many others.

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