How to Be Greedy When Others Are Fearful
I recently wrote about Warren Buffett's advice on how investors should respond to a super-contagious disease. You might think the super-contagious disease the billionaire business legend referred to was the coronavirus disease COVID-19. Instead, Buffett's advice, written to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders back in 1987, related to two other epidemics that he said occur from time to time in the stock market -- fear and greed.
Buffett's observation about these two "super-contagious disease" spurred one of his most famous statements of all time: "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." This quote from the Oracle of Omaha is repeated often, or at least part of it is. But saying something is a lot easier than doing it.
With the stock market crashing, fear is definitely running rampant. Here are three steps you can take to be greedy while nearly everyone else is being fearful.
Source Fool.com
