Rhinophobia: The Investors Disease

One of the most challenging emotional problems for investors to overcome is the desire to always be fully invested. Even the best investors have the itch to keep doing things. It requires a tremendous amount of willpower to stay out of the market and sit on your hands when everything else is going up (and more so when everything else is going down). This compulsion has been defined as rhinophobia or the investors disease. The Desire to Be Fully Invested In Roger Lowenstein’s book, Buffett: The Making of an American Capitalist, the author notes: “Ever since the early years of…