How To Overcome Fear While Applying The Logic Of 'Buy Low, Sell High'

Buying low and selling high is an age-old adage. However, far fewer people put it into practice than those who quote it.

Janus Capital Group Inc (NYSE: JNS) CEO Richard "Dick" Weil was on CNBC recently to explain how, as a professional investor, he overcomes the fear of applying that principle.

Unprecedented Times = Opportunity

"It is a little confusing because we are in unprecedented times," Weil said. "I think central banks are acting in a way which we haven’t seen before. The European Union is going through some struggles that we haven’t seen before."

He continued, "So, as an investor, I think all of us are a challenge, because we can’t analogize to the past. The opportunity for a firm like ours is, we have some of the best investors in the world and we are trying to use this opportunity to help our clients become smarter about what they are facing and to invest wisely in the face of these strange and unprecedented events."

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Overcoming Fear

Weil was asked how he overcomes the fear while applying the principle of buying low and selling high, all while running an investment firm. He replied, "Well, I think the most important thing you can do is have a framework to guide you through, because we all are subject to the same emotions. We all want to sell at exactly the wrong time…and most do, and that’s a tragedy."

He went on, "So, our job as professional investors is to help our clients avoid that terrible mistake, and so we need to work with them and their advisors to develop a sustainable framework and they need to know, ‘Hey, there’s volatility coming.’ They need to expect that. And when that happens, they need to avoid hitting that panic button," Weil concluded.

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