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His seven principles1 of how to resist the crowd pressure can be summed up as follows:
Do not buy what is fashionable at the moment.
The majority of people become attracted by equities only when everybody else is. However, you must enter the equity market right at the moment when nobody is interested in buying equities.
Never feel you are doing something right when many people agree with you. You are acting correctly if facts and justifications are flawless - and it is only when you rely on your own judgment and verify the correctness of utilised data, which leads you to successful decisions. When you see that your facts and justifications are correct, you do not need to consider what others say.
Analyses should not take public polls into consideration at all.
The most frequent cause of low prices is pessimism - sometimes general, sometimes relating to certain areas or firms. This is exactly the environment you must make deals in, and it is not because you indulge in pessimism but because it is the cause of low prices. Conversely, optimism is an enemy of a rational investor.
If you plan on saving up in the upcoming five years, should you be delighted by growing or falling equity prices? The majority of investors answer to this question incorrectly: even though they want to buy more equities in the upcoming years, they subconsciously feel better when prices grow and conversely, suffer depression when equity markets fall. These reactions have no rational sense. Only those who plan on converting equities into money in the near future should rejoice over market growth. Potential future purchasers should prefer falling prices.
Never forget that equity market suffers from manic depression.
1 Vadim Kotelnikov: Warren Buffet The World's Most Successful Investor: Success Story and Key Teachings