To be an extraordinary investor, you have to have a strong stomach.

You can’t panic and you have to think for the long-term.

Easier said than done, I know.

But one investor did it for over 50 years. Her name was Ann Scheiber and she was a regular investor who lived in New York City. She grew $5,000 in 1943 into $22 million by 1995 all by buying good companies that paid dividends.

And she didn’t panic. She was fully invested during the nasty bear market of the 1970s. During the Super Bear of 1972-1974 she lost 40% on some of her investments.

Did she take her money out of the markets? No!

She reinvested the dividends which meant buying even more shares because those shares were cheaper after the market sell-off.

She had a basic philosophy, according to Time Magazine:

“Don’t worry about daily market fluctuations; reinvest dividends; hang tough.”

Do what Ann Scheiber did. Think long-term.

She …

The moral hazard argument has been dismissed in recent weeks as the financial crisis deepened. Basically, it’s so bad now we can’t be concerned about the moral hazards of the bailouts.

But should we be blowing off moral hazard?

Suggestions have been made, most recently by Senator McCain, to have the government buy all the “bad” mortgages and renegotiate them with homeowners so they can afford the payments.

It’s a nice idea in concept, right?

But if my neighbor is in trouble on his house payment and he gets to renegotiate, why can’t I?

If he paid $500k and I paid $500k for the house next door but now they’re both worth $400k- we’re both in trouble. If he renegotiates down to $400k - where he can “afford” the payment- what does that mean for me?

I’m screwed. I’m left with a $500k mortgage on a house that is worth much, much less.

I would then …

I went to the mall over the weekend to see if I could gauge any fallout from the near-doom the country’s economy nearly suffered last week before the “rescue plan” was passed.

I went to Woodfield Mall in Schaumburg, a western suburb of Chicago. It’s one of the largest indoor malls in the country, and the largest in the Chicago area (although the Mall of America in Minneapolis dwarfs it.)

It was a lovely 65 degree and sunny day in Chicago. Given the time of year, I expected people to be out at pumpkin farms or apple orchards enjoying the nice weather before winter arrives (too soon, unfortunately.)

But I was wrong.

When I pulled into the parking lot, it was crowded. Not holiday shopping crowded, but not doom and gloom either.

It was just as crowded inside the mall.

I was suprised by this. What financial crisis?

No one in that mall had a clue that …

As the rescue plan drags on and on, the rest of the non-financial economy keeps going about its business as best it can with reduced credit and jittery customers.

Mosaic (MOS) one of the larger fertilizer companies, reported first quarter earnings today that were nearly triple the year ago quarter.

Yet the stock was crushed 17% in after hours trading.

Revenues beat analysts’ estimates as well. But investors appear spooked by the company’s decision to curtail phosphate production due to higher than normal inventory levels in the industry.

Potash, however, as I’ve talked about here before, continues to be in tight supply because of the current strike at Potash of Saskatchewan, which has shut down about 30% of that company’s production. From Reuters:

“We’re seeing in the industrial side of the potash business very strong demand … Not new demand, but demand from our competitors customers,” said Prokopanko.

Prices for Potash also continue to …