Full quote – “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
Investors being humans, are susceptible to be under the control of their own emotions. We are often driven by 2 of the most powerful emotions – fear and greed. During a bull run, investors are driven mainly by greed, taking large positions because seemingly, earning money in the stock market is easy. One after another, each investor helps propel the share price higher. The market is thus filled with greed, and you should be fearful about it, as the bubble can burst anytime.
Once the share prices can no longer sustain, the market collapses. As share prices drop, investors become fearful and start to sell their holdings, making the share price even lower. After the sell out, investors remain fearful about making investments. It is at this time that you should be greedy to pick up value stocks!
You may also like:
- Warren Buffett is buying American stocks now
- Warren Buffett – "The market, like the Lord, helps those who help themselves…"
- Warren Buffett – “I’d be a bum on the street with a tin cup if the markets were always efficient.”
- Warren Buffett – "Our method is very simple…"
- The Winning Investment Habits of Warren Buffett & George Soros by Mark Tier
- The Warren Buffett Way – Robert Hagstrom
- Warren Buffett Biography – Documentary
- Warren Buffett – "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Discover the Secrets of Singapore Trading Gurus!
Interviews with Singapore stocks, forex, futures and options traders and trainers! This book is written for you:
- learn how professionals trade
- discover their strategies, money management and approach to the markets
- understand their stories and motivation behind trading
- know your trainers before attending their courses
