“Be fearful when others are greedy, and greedy when others are fearful.”-Warren Buffett
Financial markets perform well over time, but can go haywire over short periods. They are driven by human psychology, which is far from rational.
When the Central Bank prints too much money, that causes speculative excesses. Then, inevitably, inflation comes, and the central bank eventually recognizes its error and starts tightening. Then people panic, sell indiscriminately, just as, earlier, they had bought indiscriminately.
And many securities sell for less than they are worth. And that’s the time to buy really great companies selling for a fraction of their value.
Making money in financial markets requires only modest intelligence. Mainly it requires a strong stomach.
“Be fearful when others are greedy, and greedy when others are fearful.”-Warren Buffett
Financial markets perform well over time, but can go haywire over short periods. They are driven by human psychology, which is far from rational.
When the Central Bank prints too much money, that causes speculative excesses. Then, inevitably, inflation comes, and the central bank eventually recognizes its error and starts tightening. Then people panic, sell indiscriminately, just as, earlier, they had bought indiscriminately.
And many securities sell for less than they are worth. And that’s the time to buy really great companies selling for a fraction of their value.
Making money in financial markets requires only modest intelligence. Mainly it requires a strong stomach.