cho, page-42

I think the story on page 20 sums up much of what's wrong with the mentality of many people who trade shares. Says Warren:

It reminds me a little of that story of the oil prospector who died and went to heaven. And St. Peter said, ‘Well, I checked you out, and you meet all of the qualifications. But there’s one problem.’ He said, ‘We have some tough zoning laws up here, and we keep all of the oil prospectors over in that pen. And as you can see, it is absolutely chock-full. There is no room for you.’

“And the prospector said, ‘Do you mind if I just say four words?’

“St. Peter said, ‘No harm in that.’

“So the prospector cupped his hands and yells out, ‘Oil discovered in hell!’

“And of course, the lock comes off the cage and all of the oil prospectors start heading right straight down.

“St. Peter said, ‘That’s a pretty slick trick. So,’ he says, ‘go on in, make yourself at home. All the room in the world.’

“The prospector paused for a minute, then said, ‘No, I think I’ll go along with the rest of the boys. There might be some truth to that rumor after all.’

“Well, that’s the way people feel with stocks. It’s very easy to believe that there’s some truth to that rumor after all.”