During the epidemic, you will be attacked by the virus when you are outside, and the psychological anxiety caused by staying at home and investing is even worse. In 2020, the keyword "insomnia" was one of the most popular searches on Google. Some experts call this phenomenon Coronasomnia. People who are too rich or too poor have stock market anxiety. Not only are bear market investors flustered, but investors make a fortune during the bull market, and their mood is also anxious, because no one can predict whether it is the tranquility before the storm. Stock market anxiety disorder often leads to the state of not thinking about tea, not wanting to eat, and staying up at night, so those with psychological anxiety are not recommended for high-risk investments.

Share a true story in the stock market.

When it comes to Berkshire Hathaway, everyone thinks of Warren Buffett, now 90, and Charles Munger, 97, but you know they just started Did the company have a 3rd partner? His name is Rick Guerin.

Buffett once said that Rick is a very smart investor, but his personality and financial strategy are not like himself and Charlie. Rick has no patience, he just wants to get rich quick. So he often borrowed money and used a lot of leverage to copy stocks. During the stock market crash of 1970, Rick went bankrupt and left the financial world, and he was forced to sell all of his Berkshire Hathaway stock to Buffett for less than $100 per share in order to pay off his debt. . Do you know how much is 1 Berkshire Hathaway A share now? Each share is worth more than $400,000. The stock market is reserved for investors willing to wait patiently, and Buffett made a fortune on the deal instead. Buffett said:

He and Charlie knew they'd be rich one day, but we weren't in a rush to be rich.

This financial story tells us that no one is immune to mistakes in the stock market, but we need to know how to set a stop loss point in order to reduce the damage to our wallets. When copying leverage, we must do what we can, and always invest only what we can afford to lose.

Investing is the long run of a lifetime, not the short 100-meter sprint. Learning how to manage and invest, sticking to long-term investment in valuable assets, and making good use of the resilience of time, I think, is the key to the success of a smart investor.

Amazon founder Jeff once asked Buffett:

Your investment method seems to be very simple. Why do many people follow you to pick stocks and not necessarily make money?

Buffett replied:

Because no one wants to slowly become rich!

If you make money in the stock market in one year, you cannot say that you are very good. It is true that you can make money every year after investing for 10 or 20 years, because fear and greed are the two major weaknesses of human nature. There are not many people who can buy at the lows and stick to long-term investments like Buffett in the stock market.

At first I could not have imagined that a mindless buy into an S&P 500 ETF could also bring good returns. I always remember that before the stock market crashed last March, the stock price was $310. I bought 1 share at $254, and I continued to increase it. So far, VOO has reached $400 per share. As shown in the figure, VOO stock price has been hitting new highs.

Some people often say when is the best buy point? To be honest, every time I decide to buy, I feel like I’m buying at the highest point, but looking back, it’s actually the best buying point every time, because it’s the best time to use the power of time and keep buying. point. I think that's the biggest benefit of investing in ETFs, because when you look at it over time, the market always shows a growth trend. Take VOO as an example, even if you just bought all your funds at the high point of $310 before the epidemic collapsed, and you have no cash on hand to add more money, as long as you continue to hold it for a long time, it will still bring you good capital gains and dividend income. That's why Buffett announced in his shareholder letter that his wife, who is not very good at investing, must invest most of her cash in S&P 500 ETFs after her death.

Now , the more boring the investment target, the better . At that time, VOO was so cheap.

If you want to manage your money and invest and stay away from stock market anxiety, a good way to solve your worries: Allow yourself to slowly become rich so that you can eat well and sleep well.

Not 100% sure it's a good way to relieve worries, and I'm not sure this article is going the warm route 😂. Small financial management experience sharing, I hope you like it 😊