Find The Courage To Act

A few months ago I wrote Master The Art Of Doing Nothing, in which I argued that, while it may be the most difficult thing for an investor to do, the vast majority of the time an investor should simply do nothing at all. Truly wonderful opportunities don’t come around very often but having the patience to wait for them is what separates the best investors on the planet from the rest.

However, it’s not only the waiting that is critical to success; it is also the courage to act when the time arises. Aside from being too active, another major mistake investors make is simply being too timid, or becoming too comfortable with doing nothing at all and this can be just as costly if not even more so. As Warren Buffett has said, mistakes of omission, or failing to act, have cost him far more than mistakes of commission, or acting when he shouldn’t have.

As I wrote in Master The Art Of Doing Nothing, “When it comes time to actually do something, to put money to work, you will know by the fact that it is such an attractive opportunity you would be foolish not to take advantage of it,” and I have done my level best to describe the situation in energy and commodities as just such an opportunity.

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Most investors, however, are either oblivious or are in some stage of disbelief. “When a truly terrific opportunity arises they are paralyzed by the fear of going it alone, without the comfort of the company of others, ala stocks in 2009, real estate in 2012 or gold in 2015. Or they just aren’t paying attention,” is how I described it in that earlier piece. Before energy’s recent rally, I suspect most were too fearful. Now they either believe they missed it or that it’s just another false dawn.

But this is exactly what it feels like at the beginning of a major bull market. Skepticism towards a rally is the healthiest sign you’ll find and the skepticism towards the rally in energy is so thick you could cut it with a knife. The trick is learning to feel FOMO when you should feel it when it feels like nobody else in the world could imagine feeling it, rather than allowing yourself to feel FOMO at a time when everyone else is actually feeling it.

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Disclosure: Information in “The Felder Report” (TFR), including all the information on the Felder Report website, comes from independent sources believed reliable but accuracy is not ...

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