I am a big fan of Warren Buffett. In fact I wrote about some of Warren Buffett’s quotes earlier. While reading another blog about investing, Invesmint.com, I saw the following video about Warren Buffet buying stocks.
A key quote from the video is:
Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long term asset, one that pays virtually nothing and is certain to depreciate in value.
Yes if you are smart you have cash on the sidelines. However if you are really smart you have no intention of keeping it there. You should be shopping for value. Whether that value is in the stock market like Mr. Buffett or in real estate.
Another famous quote of Warren’s is also in the video:
A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful
Many have cash on the sidelines because they are fearful. However this is the time to get aggressive with your finances. This is the time to “Be Greedy” and take advantage of the low prices. Of course “Being greedy” does not mean being stupid. You need to know how to find value, and how to assess it. If you don’t know how to do that you need to get an education and/or work with a professional you can trust.
Contact me and I will help
As a reader of this blog, contact me and I’ll be glad to help and point you in the right direction. No one, not even Warren Buffett, can predict prices short run, but real estate is currently priced very well for long run. If you have money on the sidelines and want to get into real estate, send me a message via the contact us page and I’ll give you some ideas as to how to go about it.