“As for loss aversion, psychological studies[5] have shown that a **loss hurts twice as much as a gain of the same amount** makes us happy. As people hate losing money much more than they enjoy making money, **loss aversion is what leads to panic sales** because investors sell in fear that the stock market will fall more, thus in fear of losing even more money. Selling low is the worst thing an investor can do but the selling stampedes usually lead to bargain hunting territory for the value investor.” ([Location 652](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=652)) --- **Tags** -- [[quotes]], [[loss-aversion]], [[value-investing]], **Source** -- [[202506221723 - LN - Modern Value Investing]]