This kind of thinking error appears often in the stock market. Many believe a stock that has dropped 50% is unlikely to fall further, but if fundamentals worsen, another 20% drop is very possible. Markets respond to present conditions, not past price movements—just like a coin toss has no memory.
One of the best lessons I’ve learned from Buffett is the power of independent thinking and patience. Like waiting for the right pitch in baseball, good investing means staying calm and avoiding emotional decisions. Paradoxes like this sharpen my thinking and remind me to always question what seems obvious.
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