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Very good, guys. Welcome to a reaction video. We've been doing a lot of these. People love them. I get comments on Instagram all the time. Paul, make more reaction videos. We love them, etc., etc. I haven't seen this video yet. Ironically, I don't like watching videos. I have a YouTube channel. I prefer to read the article because I can easily skim it or go back.
But Tim sent me this video. It's with Jeremy Grantham, whom I respect a lot. He is a very intelligent man. Um, he's been at this for a long time. So I'm going to skip ahead about a minute in the video. From what Tim told me, it will be about FOMO. In other words, the fear of missing out, which is a very big thing in the markets when they rise.
People are always afraid to go in because they don't want to be left out . My friends are making money, my family is making money. Okay, so I'm excited to see what this says. There will be a question here from the lady. I should know that I earned some. So, finally, Jeremy, if we have started this decline in US stocks, what hope can you give investors for the period ahead?
Hey, stay out of trouble. Make sure you don't buy expensive stocks or markets. Um, emphasize the value, the cheapness of what you get. Look for the cheapest countries. Look for the cheapest stocks within those countries. Hey, keep some cash reserves. There may be some very good buying opportunities.
And whatever you do, get rid of that fear of missing out. That terrible lust for profit that appears at the end of each of the great bubbles. He is incredibly seductive, very difficult to resist. I went through that myself a few decades ago; I made a fortune and went bankrupt. Uh, it's very sobering and I wish most of you would avoid it.
Jeremy Grantham, thank you. So guys, this is why I consider myself a good investor. I literally have zero FOMO. In fact, I have the opposite. When I hear a lot of people making money with something, my first reaction is that there's a mistake in the price. They are overpaying. Call it stubbornness. Call it arrogance .
Call it whatever you want. Call him OP. I absolutely believe that. It's very funny . In fact, I've had arguments with people when they tell me, "Oh, so-and-so is doing really well." I say, "They probably aren't. " I've literally said it at dinner parties before. People ask, " Why do you have to be such an idiot?" Because I simply don't believe the masses can do it well.
It is reserved for a small group of people who can work on themselves. And it's difficult. So, if you're new to this, and you come across this channel, you're probably thinking, "Well, I want to be a good investor. That's why you're watching this." Brilliant. You absolutely can be, but like me, it will take time.
I struggled with FOMO for a very, very long time. I still remember the first time I had a major bout of FOMO. I wanted to buy MarketWatch. They went public in 1997, 1998, 1999, something like that, and they went up 600% on the first day and I thought: damn. I missed it. He was furious. That was the first time.
That was the first time. I never bought the stock, but the point is that not buying it doesn't mean I didn't have FOMO. Now I see stocks rising 30 or 40% a day. I say: how nice. That's all. The FOMO I feel now is when stocks fall and fall and I think they might. They're close to being a good buy, but they're not quite there yet.
That's the only time I say, should I buy it? Because what if it goes down even more? That's the only time I say that, and it's not even FOMO. I just sit back and say, Paul, stick to your process. Disney has dropped 12% today. And I've always said that I like Disney around $80 or $85 per share. It's at 88.
It's close. Should I buy something? No. I just sold some put options on it. That way, I get paid to wait because I believe this market is going to drop much further. But FOMO is the hardest part because you're surrounded by friends and family who talk about all the profits they're making, blah, blah, blah, blah.
Incidentally, that's why we created this community. That's exactly why, because it's difficult to be alone on a value investing journey . Grantham says, "Look at value. What would you do right now for people who are scared? Look at value. No, always look at value. It's not just when things are going badly.
When things are going well, you still look at value . And that means maybe you have to sit on a lot of cash. Now, I don't think people should have a lot of cash if they're saving for retirement long-term. Average your costs in dollars and use low-cost ETFs. But if you want to buy individual stocks, take a portion of your money—10, 20, whatever makes you feel comfortable, whatever percentage— and be patient.
Only make purchases when you feel very comfortable, and be prepared to buy at much lower prices , because chances are you won't buy on the ground. In all my years of buying, I've bought on the ground only once . Once in 20 years, I was very lucky and bought on the ground just once . That's it. And we're talking about thousands and thousands of purchases of some kind of investment transaction.
I bought on the ground once . Once." Once. That's it. I want you to remember that it only happened once . I remember, and you know what I remember saying? I said, "[ __ ]." I mean, I was angry about it. I wanted the stock to go down more. I was actually upset. And that's the mindset I want you to adopt.
So, if you 're watching this, I need you to subscribe if this makes sense to you , because it's all about learning on YouTube. I was on my own 20 years ago when I first started to realize I was a value investor. And it was tough, and I didn't become a value investor overnight. But I wish I'd had a community like this and a channel I could have watched, because back then I would have watched videos and said, "Okay." And I would have understood.
Instead, I was on my own. And now I'm surrounded by tons of people who disagree, even my friends don't always agree with me. They make fun of Mo and me. "Oh, you guys just don't get it." Mo said he just sold put options today, or recently, on Tesla at a price that would imply an 80% drop. And our friends were making fun of him.
That's how I know we have n't reached the endpoint yet. That's how I know we haven't reached the endpoint yet. When people are still telling us we don't understand Bitcoin. I know we're not there yet, but cool. That's the fear of missing out , because there are no fundamentals that justify the price of Tesla, the price of Bitcoin, and even Apple .
I don't think the fundamentals justify it. Even though Warren Buffett is buying, I don't see it that way for me. And I'm okay with that. Here's the key. Warren Buffett is buying Apple at 130 or 140. I'm not because I can't get that price. That's where I want you to get to, that's where you can get to.
Anyone can be a good investor, but it's about working on your emotional side. Your mindset and the process are very important, but the emotional aspect is the most important. And look what He calmly says it: just don't fall for it, guys. Don't chase it, don't chase the trend. Go watch our videos. We have over 1,800, maybe 1,900 videos on this channel already.
And literally, people's comments are: you're an idiot. You don't understand anything. I remember back in February 2021 when I was saying that Kathy Wood's ARK fund was a terrible investment. And literally, people were writing, "Wow, she has a hedge fund." By the way, she does have a fund, but she has a fund and you have a YouTube channel.
I wonder who's right. Well, ARK was at 160 at the time. It's currently at 35 or so. Okay. Yeah, maybe she's right . She could end up being right. But you know, I don't think she is . Her process. And that's what I want you to learn. I want you to learn the emotional side, the mindset, and the process.
The process is the smallest part. I can show you the numbers. Watch. If you watch enough videos here, you'll understand the Numbers. But it's the emotional and mental part that you need to keep hammering home. Guys, I do n't have FOMO. I keep reading books on how not to have FOMO because I want to repeat it to myself over and over again , since I don't want to become complacent.
I keep reading the same books over and over again. The Education of a Value Investor, The Psychology of Money, The Intelligent Investor. These are books that I reread. I took notes from them, had my assistant transcribe the notes, and I reread them. Why? I want to hammer the same things into my head over and over again .
That's how I got to the point where people will literally say to me, "Oh, this person made a fortune with this." No, it probably didn't. And if it did, there's probably a reason it's wrong. Because that's how I see things, and it might sound strange to you, but if it makes sense to you, maybe you have a value investor inside you.
And if it does n't click for you right away, that's okay. Warren Buffett says a value investor gets it immediately. I don't necessarily agree. I think sometimes it takes a little while. It takes while because I used to have FOMO, but I remember hearing things and thinking, "That makes sense." That does make sense.
But I still thought back then it was different. And then I learned it wasn't . So trust me on this. Stick with me on this. It's a long ride. It's fun, but it never ends . I'm 41. I'll read these books until I'm 100 and die at my desk buying cheap stocks. Don't forget to subscribe. Thank you so much for your time.
There are three things you absolutely need to be a successful investor: the right mindset, the right emotion, and the right process. Which is the most important?
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