I just came upon a great article by Warren Buffet in the NY Times entitled, “Buy American, I Am”. Besides that fact that he is more or less a hero and icon in the financial world, he is also one of the world’s greatest modern philanthropists. He is certainly my hero.
His article talks about the current economy and why he says it might be a wise idea to buy American stocks right now because they are a bargain.
“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.”
Buffet has always been a rather simple investor always looking at the fundamentals and investing for the long run. While every other investor seems to be running around trying to get the quick buck, Buffet keeps his cool and realizes big gains over a longer time frame.
There is really two take away points here. 1. Don’t be afraid to go against the grain. The best opportunities are many times the ones people are too fearful or lazy to pursue. Be the minority. 2. Keep a long term perspective. Even though things are bad right now they will recover. It may be months, it may be years, but they are guaranteed to recover. Everything comes in cycles.