We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Interpretation
The quote advises to be cautious when others are overconfident and to take risks when others are scared.
Warren Buffett's quote encapsulates a fundamental principle of investing and decision-making that emphasizes the importance of contrarian thinking. It suggests that during times of market exuberance, one should be wary and cautious, while in times of fear and uncertainty, one should seek opportunities to invest or act decisively. This mindset helps investors align their actions with the market's psychological states, often leading to more prudent and potentially profitable outcomes.
In practice
In a financial seminar discussing investment strategies.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
There is more beauty in truth, even if it is a dreadful beauty. The storytellers at the city gate twist life so that it looks sweet to the lazy and the stupid and the weak, and this only strengthens their infirmities and teaches nothing, cures nothing, nor does it let the heart soar.
Some luck lies in not getting what you thought you wanted but getting what you have.
To go out of your mind once a day is tremendously important, because by going out of your mind you come to your senses. And if you stay in your mind all of the time, you are over rational, in other words you are like a very rigid bridge which because it has no give; no craziness in it, is going to be blown down by the first hurricane.
Sow an act and you reap a habit. Sow a habit and you reap a character. Sow a character and you reap a destiny.
Nor deem the irrevocable Past _x000D_ As wholly wasted, wholly vain, _x000D_ If, rising on its wrecks, at last _x000D_ To something nobler we attain.
It is the quality of our work which will please God and not the quantity.
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