The Golden Wisdom from Charlie Munger
If you can't calmly and equably accept a 50% drop in the stock price — twice or three times over the century —
then you simply are not fit to be a stock investor.
Because investing is not a matter of extraordinary intelligence, but the ability to be patient and disciplined when others lose their heads.
Munger meant something profound here.
The market does not reward the smartest, but the most equable.
Those who cannot withstand the fluctuations will sell at the bottom, buy at the top, and end up with 'ordinary'... or worse results.
So if you are not prepared to live with the downturn, you are forfeiting the reward of the upturn to those who are more patient than you.
