You saw the stock market declining, so you bought the dip. The next day you saw the market rising, so you decided to book profits in your trade. While following such a strategy might give you momentary happiness, but does this strategy work in the long term? Not always and this is not how smart people make big money. Late legendary investor Charlie Munger had himself said so.
Warren Buffett's business partner and the longtime Vice Chairman of Berkshire Hathaway - Munger – passed away in November 2023, but his astute words continue to reverberate with the investing community. Munger had often spoken about patience when it comes to real wealth creation.
