What would Warren do? Now there’s a question. Safe guess, it’s not what most people would do.
Tomorrow (i.e. Saturday), the most anticipated annual letter is published. You can find it here.
Why Saturday? Because of what Warren doesn’t do. It prevents shareholders from making rash decisions without thinking through the annual results. Investors are forced to reflect all weekend before they act on Monday.
It’s a three-day rule (no not that 3-day rule).
And every investor should adopt it. Anyone who disagrees should try it anyways.
I bet you end up with better decisions that lead to better results…all because you waited three days before following through on a decision…which happens to be about the same time the market needs to cool off from its overreaction to big news.
- Here’s What Buffett Wouldn’t Do, and Maybe You Shouldn’t Either – Bloomberg
- 7 Investing Lessons from Behavioral Psychology – Psy-Fi Blog
- Will You Be a Gambler or the House In the Stock Market? – Investor Field Guide
- The Eventual Consequences of Risk Seeking or Risk Blind Behavior – Fundoo Professor
- Predicting Stock Market Returns Using the Shiller CAPE – R. Keimling
- In Search of the Perfect Recession Indicator – Philosophical Economics
- What’s Next in Computing? – C. Dixon
- The Robots Are Coming for Wall Street – NY Times
- Bill Gates Interview: An Energy Miracle is Coming, and it’s Going to Change the World – Tech Insider
- How a Group of MIT Students Gamed the Massachusetts State Lottery – The Atlantic