Press "Enter" to skip to content

Follow Warren’s Advice


As I’m sure most people know by now…the Stock Market can be very unpredictable. It can go up for seemingly no reason and go down equally for no reason. When it’s down, people are not spending money or going out, which can have a huge impact on our economy.  And when the economy is affected, the Stock Market is even more affected.  In the past, we’ve seen some very big drops.  And when these drops happen, people become fearful and begin to sell their stocks.  They are trying to get their money out before they lose it all.  At least this is what most are thinking.  But maybe we should follow Warren’s advice.

Warren’s Advice

I am sure most of you have heard of Warren Buffet.  The famous stock investor who is currently worth 71.5 Billion dollars.  Yeah, that billion with a capital “B.”  I heard this popular quote from him a few years back and haven’t forgotten it:

“Be fearful when others are greedy, and be greedy only when others are fearful.”

Hmm…what is he saying here?  I didn’t understand it at first, but having someone so rich say this made me want to learn more.  So I did my research and this is what I believe he’s saying.  Let’s break it apart to easily understand it…

“Be fearful when others are greedy…”

Mr. Buffet is telling us that when other people are buying up stocks left and right, we need to be afraid.  Too many people buy into the Stock Market when the economy is booming.  When this is happening, most people are probably paying more money than what the stock is worth.  They buy it, the stock goes up, it’s doing well, and they’re feeling great.  They even tend to become greedy, trying to buy as much as they can.  The problem is that most people in this situation are buying the stock at top dollar.  Many times, it can only go down from there.  So, when the Stock Market is booming, be fearful and don’t buy unless you find a stock at a great price and value.

“…be greedy only when others are fearful.”

If you are not sure what fear is, watch your local news.  The Coronavirus created worldwide fear.  The Stock Market has had huge drops, people were losing money, and trying to sell their stocks, salvaging whatever money they could.  This is when Mr. Buffet says you need to be greedy.  The Stock Market dropping can seem horrible, but for the smart investor, it’s an opportunity.  The stocks go on sale.  It’s the best time to buy your favorite stocks at a cheaper price.  Think about it, don’t you want to buy things when they’re on sale?  Of course you do.  And when the Stock Market has a big drop, stocks are on sale!!!  According to Mr. Buffet, it’s time to buy!!!  When others are fearful and selling their stock as the market is dropping, it’s your opportunity to buy them at a cheaper price.  He says it’s time to be greedy.

The Takeaway

For the record, I am not a financial advisor.  I am sharing content with you to peak your interest and get you thinking.  When it comes to practical advice, consider this post for entertainment purposes only.  But when it comes to a mindset about money, seriously consider what Mr. Buffet is saying.  Talk to your financial advisor and get their advice.  With the Stock Market dropping, you can buy the same stocks as before, but at cheaper prices.  Your money will buy you more.  This seems like a great time to be a bit greedy.  I’m sure many people got rich from the fear the Coronavirus created in the Stock Market.  You could too if you play your cards right and make good choices.  Talk to your financial advisor as soon as you can to get some guidance!!!

Share with your friends!!!

Leave a Reply

Your email address will not be published. Required fields are marked *