John D. Rockefeller – "The way to make money…"

Full quote – “The way to make money is to buy when blood is running in the streets.”

Baron Rothschild has a similar quote in 1871 – “Buy when there’s blood in the streets.”

This is a famous quote and often held dearly to the hearts of value investors. It is indeed true that every calamity gives rise to opportunities. Robert Kiyosaki also mentioned that in every economy downturn, wealth will change hands.

It is quite unethical to have a phrase like this as it sounds like profitting on someone’s expense. It actually depends on how you look at it. We understand that a bull run must always precede a crash and it is normal that most investors get into the market to earn a quick buck. They are driven by greed. No one forces them into the game and it is purely voluntary. Sadly, many are unable to get out before the crash comes.

Hence, it is time to pick up the bargain stocks after most of the investors are “slaughtered”.