so said Warren Buffett, the history best investor, and the world's richest man.
You have been warned.
If you insist on buying this overheated markets, you are on your own.
Want more?
Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well
Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.
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.
Whether weâre talking about socks or stocks, I like buying quality merchandise when it is marked down.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
* 1990 Chairman's Letter to Shareholders
"If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period?"Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall."This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.
* 1997 Chairman's Letter to Shareholders
You have been warned.
If you insist on buying this overheated markets, you are on your own.
Want more?
Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well
Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid.
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.
Whether weâre talking about socks or stocks, I like buying quality merchandise when it is marked down.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
* 1990 Chairman's Letter to Shareholders
"If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period?"Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall."This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.
* 1997 Chairman's Letter to Shareholders