The Intelligent Investor - 05

===CHAPTER 4 General Portfolio Policy: The Defensive Investor

Psychologists have shown that most of us do a very poor job of 

predicting today how we will feel about an emotionally

charged event in the future.

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When stocks are going up 15% or 20% a year, 

it’s easy to imagine that you and your stocks are married for life. 

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But when you watch every dollar you invested getting 

bashed猛烈一击 down to a dime, it’s hard to resist

bailing out保释? into the “safety” of bonds and cash.

Instead of buying and holding their stocks, many people 

end up buying high, selling low, and

holding nothing but their own head in their hands.

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Because so few investors have the guts to 

cling to固守 stocks in a falling market.

Do not buy more stocks because the stock market has gone up; 

do not sell them because it has gone down.

Anyone who panicked in the last bear market 

is going to panic in the next one—and will

regret having no cushion of cash and bonds.