There is a well-known saying on Wall Street: "When panic grips the market, greed takes over." This sentence reveals a common psychological tendency of investors when facing market fluctuations - rationality is often dominated by emotions.

As a legendary figure in the investment world, Buffett has been emphasizing the importance of rational investment for many years. He once said: "Investment is a process that requires rational thinking, not relying on feelings and intuition." However, in this rapidly changing era, fewer and fewer people can truly make rational investments.

What makes rational investment so difficult? Is it the changes in the market environment or the difficult-to-overcome emotional factors in human nature? Let's discuss it together.

####Buffett's rational investment philosophy

As one of the world's most famous investors, Buffett has always been known for his unique value investment philosophy. He emphasized that investment should be based on in-depth research and value assessment of the target company, and should not be overly affected by market sentiment.

In Buffett's view, the essence of investment is rational analysis. He once said: "We don't care about short-term stock price fluctuations, but focus on the intrinsic value of the company." This investment philosophy that focuses on fundamentals and long-term value has enabled him to remain calm and rational during many market turmoil.

Take the 2008 financial crisis as an example. At that time, the market was in a panic and many investors sold their stocks. But Buffett bought heavily and got rich returns after the crisis. He explained in an interview: "When panic shrouds the market, we should remain rational and calm and look for undervalued high-quality companies to invest in."

Buffett's investment style is undoubtedly in sharp contrast to the general public's investment habits. Most investors tend to chase rising and falling prices, blindly follow the trend, and lack rational analysis. This behavior pattern often leads to significant losses in market fluctuations.

###Thestruggle between reason and emotion

The reason is that the difficult-to-overcome emotional factors in human nature are undoubtedly a major obstacle. Psychological research shows that when humans make investment decisions, emotional factors often dominate.

For example, when the market is booming, greed will drive investors to blindly chase the rise, while ignoring the in-depth analysis of the target company. On the contrary, when the market is plummeting, fear will make investors easily swayed by panic and make hasty selling decisions.

This emotionally driven decision-making model is completely different from the rational investment philosophy advocated by Buffett. As he said: "Investment is a process that requires rational thinking, not relying on feelings and intuition."

However, it is not easy to truly invest rationally. Investors not only need to have professional financial knowledge, but also need to have strong psychological qualities to remain calm and rational in the face of market fluctuations.

This may be why, behind the decreasing number of rational investors like Buffett, there is a deeper social problem hidden - it is becoming increasingly difficult for people to overcome their emotional preferences and make rational judgments.