> Warren Buffett Blog: Markets are like a crazy drunk person

Wednesday, January 14, 2015

Markets are like a crazy drunk person


You can ignore [the stock market]. You’ve got your choice of thousands of businesses, and the best thing for most people is to buy a cross-section of them.

Every day I get offered through the stock market thousands of businesses, and the prices change every day, and the nice thing about it is that this imaginary person out there, Mr Market, is kind of a drunken psycho.

Some days he gets very enthused and some days he gets very depressed. And when he gets really enthused, if you happen to be trading stocks, you sell to him. And if he gets very depressed, you buy from him.

There’s no moral taint attached to that. When people get scared other people get scared.. Emotions are contagious, and emotions have no business in investing.