Warren Buffett Just Taught Investors Another Big Lesson About Greed

In addition to being perhaps the most successful long-term investor in history, Warren Buffett has penned a host of memorable aphorisms in the course of writing dozens of annual Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholder letters.

One of his most famous sayings dates back to the 1986 shareholder letter, when Buffett wrote: "Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." He reiterated the point in another shareholder letter nearly two decades later, saying that if investors feel compelled to try to time the market, "they should try to be fearful when others are greedy and greedy only when others are fearful."

Many value investors probably thought they were following Buffett's advice by buying airline stocks hand over fist as they plunged between February and April. On average, shares of the four largest U.S. airlines -- American Airlines (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) -- have lost about two-thirds of their value since mid-February.

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Source Fool.com