Today's Words of Wisdom
The following is an old quote from Warren Buffett, but poignant for todays market.
Occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics is equally unpredictable, both as to duration and degree. Therefore we never try to anticipate the arrival or departure of either. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.
Our favorite holding period is forever.
If you are a professional and have confidence, then I would advocate lots of concentration. For everyone else, if it's not your game, participate in total diversification. The economy will do fine over time. … buy a cheap index fund and slowly dollar cost average into it.
We don't get paid for activity, just for being right. As to how long we'll wait, we'll wait indefinitely.
The stock market is a no-called-strike game. You don't have to swing at everything – you can wait for your pitch. The problem when you're a money manager is that your fans keep yelling, 'Swing, you bum!'
This is the time to buy not sell stocks - sage investment advice from one of the best investors ever. That's why we model our process after his.
