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.
if we focus on what's ugly, we attract more ugliness into our thoughts, and then into our emotions, and ultimately into our lives
It doesn't matter what one reveals or what one keeps to oneself. Everything we do, everything we are, rests on our personal power. If we don't have enough personal power the most magnificent piece of wisdom can be revealed to us and it won't make a damn bit of difference.
You forgive yourself for every failure because you are trying to do the right thing. God knows that and you know it. Nobody else may know it.
Emotions are classes in the Earth school. Some classes are about fear, and some are about love. The Universe is your tutor, and your classroom is your life. The main course in the Earth school, Authentic Power, is the same for everyone, but different students need different courses in order to complete it.
Those who think they 'know' from the beginning will never in fact _x000D_ come to know anything.
Certain brief sentences are peerless in their ability to give one the feeling that nothing remains to be said.
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