Have you ever bought a pair of new shoes that you had been planning to purchase for a while, only to regret the purchase as soon as you got home? Perhaps it was the best deal in the last three months, and you got over 30% off the original price. Despite this, you still can't stop thinking that you might have overpaid for that shoe. Or you might start to think that you didn't really need a new pair of shoes, and you've wasted "unnecessary" money on them.

This kind of regret after purchasing a product is known as buyer's remorse.

Don't worry, you're not alone; everyone experiences this.

However, buying products is not the only reason people feel "buyer's remorse." Stock investors, like everyone else, can also experience buyer's remorse after purchasing stocks. Anyone who has been in the market for a long time has likely experienced investor's regret.

Here, we will discuss what buyer/investor's remorse is and how to deal with it.

Investor's Remorse

Investors sometimes feel remorse after making an investment decision that does not yield immediate results. The sense of guilt becomes more pronounced when the stock price begins to fall.

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In such cases, every investor will consider the following questions:

"Was buying this stock a mistake?""Is my timing right?"

"Did I just buy a lemon-flavored stock?"

"Will the market crash?"

"What if I lose money?"

Moreover, when people see the latest news, the sense of self-blame among investors becomes even more intense. Television analysts/anchors make the current facts (which were not available at the time of investment) seem so obvious that people immediately start to regret their decisions. However, it is always easier to see the past than to predict the future. As Warren Buffett often says:

"In the business world, the rearview mirror is always clearer than the windshield," - Warren Buffett

You are likely making the best decision based on all the available information at the time of investment.

Buyer's Remorse Effect

Generally, there are two effects of buyer's remorse.

The impulse to make a return (or sell) a product, which may be well-founded and initially a wise idea.Demonstrate the rationality of investment and refuse to accept mistakes.

Both of these impacts can be detrimental to investors.

Leaving your position in a well-researched stock just to alleviate guilt is never a good idea.

On the other hand, becoming stubborn about your investment decisions can harm your portfolio and prevent you from learning valuable lessons.

Methods to handle buyer's remorse:

The best way to handle buyer/investor remorse is to re-examine your purchase (risks and opportunities).

If the fundamentals remain the same and the reasons for purchasing the stock are still valid, then hold on to your stocks.

On the other hand, if you have made a mistake, correct it.

The following two methods can help you avoid buyer's remorse:

1. Avoid impulsive buying and selling: Conducting in-depth research before buying and selling is always a better approach. Making informed decisions will build confidence in your investments, even if these investments do not yield short-term results.2. Have a margin of safety: If the intrinsic value of a stock calculated is 100 yuan, then apply a 20-30% margin of safety to your calculation, and only purchase it when the stock's trading price is below its value, at 70-80. Having a margin of safety when buying stocks can reduce risk and protect your investment.

One final tip - always remember that buyer's remorse is natural and an inherent human psychology. However, the behavior or reaction to this sense of guilt depends on the individual. The ability to handle buyer's remorse will make you a better investor.