Lessons From Warren Buffett: There’s Nothing More Agonizing Than This

There is investing and then there is just plain gambling. It is something that Warren Buffett sees as almost inevitable for a certain type of investor. What type of investors are they? They are investors that always have their eyes on somebody else’s portfolio.

“There’s nothing more agonizing than to see your neighbor, who you think has an IQ about 30 points below you, getting richer than you are by buying stocks. And whether it’s internet stocks or whatever… and people succumb to it,” Buffett explained at the 2017 Berkshire Hathaway Annual Meeting. “If the market gets hot, new issues are doing well and people on leverage are doing well, a lot of people will be attracted to, not only speculation, but what I would call gambling.”

Buffett’s full explanation about speculation and markets

See the complete Lessons From Warren Buffett series

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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