Persons are strange, very strange.
And the markets, defined by Buffet as maniac depressives, follow people's behaviour.
And the markets, defined by Buffet as maniac depressives, follow people's behaviour.
When there are sales at the stores there are lines of persons in queue for hours in order to make 'big businesses'. Those same persons do not hesitate one minute before running far away by the Stock Exchange when it is on sale, instead of jumping in with all the strength of a natural business killer!
To be more clear: why most of people are attracted by a Bag on sale of 30% discount and in meantime they are afraid when the Bags maker, with increasing revenues and sales and with solid and powerful management, is on sale of 20% and do non buy it?
Stock markets are going up and down periodically, but on the long time they will be always running up as history as shown during last centuries.
That means that if we find a very good company with great management and profitable sales and accounts we have to enjoy the moments when the global markets go on sales because they put on sale a lot of excellent companies.
If you are holding some companies and the markets go down because they are maniac, do not be scared and be a killer: buy as much as you can.
It is not me discovering hot water, so I just let Warren Buffet says directly to you what to do:
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."- lecturing to a group of students at Columbia U. He was 21 years old.
Should you learn to listen to him? At the end, he has made some good businesses no?
Second half of 2007 and probably whole 2008 the World Markets are “ON SALE”, so if you are wise, you should be very happy because it is time to seek and find gold nuggets! Hold on and at the end the Bull will win.
Last year global markets performance.
1 comment:
I cannot believe all the stock bargains around during the 2008 and 2009 panic.
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