No. of Recommendations: 15
"Did something today… a little “irrational exuberance” in the opening hr…. then continued on from Fri in a ho-hum way digesting the previous months euphoria.
Check out the price action plot in todays Rational Walk letter.
https://newsletter.rationalwalk.com/p/too-clever-b...".
Thanks for posting. That's a great reminder of not trying to out think yourself. I think as long term shareholders of Berkshire it's not normal to deal with large sudden upswings in stock price. Our brains are conditioned for slow and steady so when something comes across quick and sudden it's almost like we don't know how to react:-)
This is the best line from Rational Walk.....
"If you intend to be a long-term shareholder in a business, trying to profit from this type of move is a very bad idea. It could work well for a specific trade, like today. But like any gamble that pays off, the dopamine effect is so powerful that success will inevitably induce further gambling in the future."
It's so true! Just stay the course and so long as there is nothing materially wrong with the company don't worry about when to sell. One thing I do is try not to base net worth off of what my actual net worth is. I will take it and shave off 30%, using that as my range for net worth. This helps in conditioning the brain when you're at a high that a sell off is always possible and you are better equipped a drop.
