Why can we wait for discounts when buying clothes, but always chase high prices when buying stocks?

I've finally realized that the biggest enemy in investing isn't the market—

it's ourselves.  

I've finally understood: investment failure often doesn't stem from an inability to analyze companies.  

A few days ago, I came across an investment story shared by Munger.  

In 1969, a certain investment approach was popular on Wall Street—one that almost everyone believed couldn't fail.  

Investors would buy shares of the top 50 American companies, such as IBM, Kodak, Xerox, and Coca-Cola—industry leaders—and hold them long-term.  

These companies represented nearly the best businesses in America at the time.  

Yet, several years later, many investors suffered heavy losses.  
Why?  

Because they made a simple yet foolish mistake.  

They saw the quality of the companies, but forgot how expensive the prices were.  

Even the best company, if bought too dearly, could become a failed investment.  

At this point, I suddenly recalled something unrelated to investing.  

 

Why do we usually stay rational when shopping for clothes?  

A few years ago, e-commerce wasn't as widespread as it is today.  
On weekends, my favorite pastime was strolling through malls.  

Each store was beautifully decorated with soft lighting, making shopping feel more like relaxation.  

When I found a piece I liked, I'd try it on repeatedly, look in the mirror, and imagine myself wearing it.  

Sometimes I truly loved it.  
But upon seeing the price tag, I'd still decide not to buy it right away.  

Salespeople kept urging me:  
"It really suits you."  
"You might not find it again."  
"This style will be discontinued once it sells out."  

Still, I never bought it.  
Not because it wasn't good.  
Just because the price hadn't reached a level I was willing to accept.  

Later, I'd return every now and then—especially during holiday sales.  

If I finally waited until the discount came, I'd buy it without hesitation, even feeling a small sense of satisfaction.  

The same piece of clothing. No changes at all.
What changes is only the price.  

 

But why, when it comes to the stock market, do I become a completely different person?  

It wasn't until I entered the stock market that I realized:  
I am doing the same thing—buying things—  
yet I feel like someone else entirely.  

When buying clothes:  
The more expensive it is, the calmer I am.  

When buying stocks:  
The higher the price rises, the more I want to buy.  

With clothes, I'm willing to wait patiently for a discount.  
With stocks, I fear missing out on further gains.  

Why?  
Later, I finally understood.  

 

The greatest temptation in stocks has never been the stocks themselves, but rather seeing others making money.  

Stock prices fluctuate every day.  

A rising price means:  
Others are earning.  

Clothes don’t tell you daily:  
"Today it’s up 8%. Tomorrow another 5%. The next day, it hits a limit-up again."  

So when facing clothes, we think:  
"Wait a bit—maybe there'll be a sale next month."  

But with stocks, our minds instantly whisper:  
"If I don't buy now, I’ll miss my chance."  

In truth, what we truly fear at this moment isn't the stock going up.  
It's the fact that others are making money while we stand still.  

Then our brain automatically calculates:  
If I had bought yesterday, I’d already made 10%.  
If I'd bought last week, I’d have earned 30%.  
If I don’t buy now, will it keep rising?  

Strangely enough,  
we’ve never actually earned this money.  
Yet it feels as if it already belongs to us.  
And once we miss it,  
it feels like a real loss.  

This is what behavioral finance calls FOMO—Fear of Missing Out.  

The most dangerous aspect of the stock market isn’t the price increase itself.  
It’s the constant reminder that others are gaining, while you’re not.  
That single thought turns countless rational people into impulsive ones overnight.  

 

I too once chased high prices out of fear of missing out.  

Recently, the semiconductor sector went wild.  
Every day I opened my trading app,  
AI, computing power, optical modules—everywhere.  
Stocks hit new highs daily.  

Deep down, I knew:  
Valuations were no longer cheap.  
Still, I couldn’t resist.  

Looking back later, I finally realized:  
What really drove me to buy wasn’t the company’s value.  
It was market sentiment.  

At that moment, I finally understood:  
I wasn’t buying stocks—I was buying anxiety.  

 

Warren Buffett competes not with insight, but with patience.  

He once said:  
"The stock market transfers money from the impatient to the patient."  

I used to think he meant long-term holding.  
Now I see there’s another layer.  
Waiting to buy also requires patience.  

True great investors don’t rush to buy just because they spot a good company.  
They’re willing to wait—  
to wait for prices to return to reasonable levels.  

What if they never come?  
Then they keep waiting.  
What if they end up missing it?  
Then they accept the loss.  
Because markets never offer just one opportunity.  

The real danger isn’t missing a single rally.  
It’s paying too much simply because you’re afraid of missing out.  

 

The stock market tests not intelligence, but emotions.  

Over the years of investing, I’ve come to realize:  
Studying companies, learning financial statements, analyzing industries—none of it is as difficult as imagined.  

The real challenge lies in staying calm when the market is at its busiest.  
Many fail not because they can’t pick good companies.  
But because, even after knowing what makes a good company,  
they still can’t control their emotions.  

In truth,  
buying stocks and buying clothes follow the same principle.  

Liking something doesn’t mean you should own it right away.  
Being excellent doesn’t mean it’s a good price today.  

In the mall, we believe:  
Good things are worth waiting for a better price.

Yet in the stock market, we often assume:  
A good company must be owned immediately.  

What truly needs to change isn't our investment approach,  
but that eager heart tempted by instant gratification.

 

Final Thoughts  

The stock market is like life, and life is like the stock market.  

The market changes every day—industries shift, trends evolve, prices fluctuate.  
But human nature remains almost unchanged.  

The next time you're about to buy a company, perhaps ask yourself this:  
If this weren't a stock, but a piece of clothing I liked, would I buy it today?  

If the answer is no,  
then perhaps what really needs waiting for isn't the market—  
but your own impulse.

--Extended reading

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