Bill Miller on fear and greed

One of the things that we know - it's been proven over and over again - is that the coefficient of loss-to-gain is 2-to-1.  So a dollar's worth of loss in the market is twice as painful as a dollar's worth of gain is pleasurable.  And, as Warren Buffett often says, "fear is contagious and spreads rapidly, and confidence only returns slowly, one person at a time."  But what that means is that when you have very dramatic events that people tend to overreact to them and that those are rare, but they're perfect buying opportunities.

~ Bill Miller, interview with Consuelo Mack, January 11, 2022