📖Warren Buffett

Patience

🌿 Intermediate★★★★☆

Patient investors systematically capture wealth from those who trade impulsively.

💬

The stock market is designed to transfer money from the Active to the Patient.

— 2013 Berkshire Hathaway Letter to Shareholders，2014

🏠 Everyday Analogy

Investing is like planting a fruit tree. The impatient person plants today and expects to eat the fruit tomorrow, only to end up with nothing. Meanwhile, the patient person carefully selects the sapling, nurtures it with dedication, and calmly waits for it to blossom and bear fruit, ultimately harvesting a tree laden with abundant rewards. The stock market is precisely such an orchard—only the most patient gardener reaps the richest returns.

📖 Core Interpretation

The Three Dimensions of Patience: 1. Patience in waiting for buying opportunities. 2. Patience in holding high-quality stocks. 3. Patience in waiting for results.
💎 Key Insight：The stock market is a massive transfer mechanism: money flows from the impatient to the patient. Day traders, market timers, and momentum chasers generate transaction costs and emotional errors. Patient investors who buy quality and hold through volatility steadily accumulate what others lose. Patience isn't passive — it's the most profitable form of discipline.

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❓ Why It Matters

Why do most people lack patience? Media-induced anxiety, social comparison, the lure of short-term feedback, and overconfidence.

🎯 How to Practice

How to Cultivate Patience in Investing? 1. Establish a Long-Term Framework 2. Minimize Distractions (Avoid Checking Market Quotes Daily) 3. Manage Expectations 4. Engage in Other Activities

🎙️ Master's Voice

The stock market is designed to transfer money from the active to the patient.
Studies show that the average investor earns far less than the market because of poor timing—buying after gains and selling after losses. Buffett profits from this human behavior. When others panic, he buys. When they're euphoric, he waits. Patience is his competitive advantage.

⚔️ Practical Guide

✅ Decision Checklist

  • Am I reacting emotionally to market movements?
  • Have I traded more than necessary this year?
  • Am I buying from panicking sellers?
  • Can I hold through a 50% drawdown?

📋 Action Steps

  1. Track your trading activity—less is usually more
  2. Set rules that force you to wait before trading
  3. Use market volatility to your advantage
  4. Review past impulsive decisions and their costs

🚨 Warning Signs

  • Trading frequently based on news or emotions
  • Selling during every market decline
  • Buying during every market rally
  • Checking your portfolio obsessively

⚠️ Common Pitfalls

✕Patience means doing nothing – it is a state of prepared waiting, during which one must continuously learn and conduct research.
✕Take immediate action when the market declines - a downturn is merely a trigger; it must also be confirmed that the price is below intrinsic value.

📚 Case Studies

1
Waiting for Coca-Cola (1988)
We observed it for 50 years and only bought in 1988 when the price was right.
✨ Outcome：Demonstrates the principle in practice.
2
Berkshire's Cash (2020)
Holding hundreds of billions of dollars in cash
✨ Outcome：Waiting for "Elephant-Sized" Opportunities

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