Warren Buffett

So yes, we will be doing quote analysis of Warren Buffet's quotes. So let's get started. If we have to understand this quote deeply, you should know the other quote too which is " Be greedy when others are fearful and when other are fearful be greedy". So, when people are too greedy, then be scared and when everyones scared in the market, begin being greedy. " The stock market is a device" and the people who are not patient, will loose money and the people who are patient will gain money. In fact the biggest factor in stock market is patience. If you don't have patience then be as far as you can from stock market. Many people have lost millions in this, they all believe that this is some kind of get rich scheme. They all don't even understand the basics. If you understand closely then you can see, that all those people are speculators and Warren Buffett is investor. We need to understand the difference between a speculator and a investor. Speculation is if you are timing a market. You're using your brain, whether a stock is going up or down. Now it's here and tomorrow it will be there. If you put money on a stock based on its price then you're a speculator. Winning in speculation is next to impossible, because timing a market not possible. We can't know what will happen in the market tommorow. If you invest in stock market like this, then you might earn some money for a short period of time, but in long term, you will only loose money. If you actually want to earn money, then you would have to understand, the people who have earned money, meaning warren Buffett. Not 1 year, 2 years, 5 years or 10 years, he has been earning from stock market from about 40 years. He started with just few thousand notes, and now he is one of the riches mans. So this is also possible in stock market, so there are many cases where people have put their everything and lost everything in stock market. What is the biggest difference between speculators and investors, speculators go according to their emotion, there are two types of emotions in the market, fear and greed. When everyones greedy, then speculators get even greedy. This is known as bull and bear. The speculators become more bully. When markets going up, they will think its going more high more high. When everyone greedy they are being that too. When market crashes then people become bearish. They will think that it will go down down down. So what is the difference between speculators and real investors. Speculators spend their money when investors are selling them, and when speculators get scared and sell then the investors buy. If you are a intelligent investor then you can never loose money in long term, and of you are a speculator then you can't make money long term.