The legendary investor has long advocated that obsessing over daily market movements is a mistake. During a notable interview, he shared a simple but powerful gauge: if market pullbacks keep you anxious or awake at night, your portfolio allocation might be misaligned with your actual risk tolerance.

His perspective flips conventional thinking on its head. Rather than treating equities as short-term trading vehicles tied to daily news cycles, successful investors should view them differently—as ownership stakes in growing businesses held over extended periods.

This framework separates emotional decision-making from rational strategy. When corrections arrive (and they always do), disciplined investors recognize these as normal market mechanics, not personal catastrophes. The difference? Those who sleep well during downturns typically made peace with volatility before entering the market, not after watching their portfolio fluctuate.