Successful investing requires strong conviction. However, investors must avoid becoming so emotionally attached to their thesis or a company that they ignore or misinterpret clear negative signals. The key is to remain objective and data-driven, even when you believe strongly in an investment.
Founders often experience extreme emotional volatility, swinging from euphoria after a win to despair after a setback. The key is to understand that neither extreme reflects the true state of the business. Maintaining a level-headed perspective is crucial for long-term mental health and sustainable leadership.