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.
Happy investing,
Ned
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7 responses so far ↓
1 Sire (53 comments.) // Mar 17, 2009 at 1:50 am
I agree that now is the best time to buy. I just wish that I had the extra cash to invest more than I already have. Because of the big downturn I am losing about 60% in value in stocks were I to sell today. Naturally I won’t be selling but the problem is that while I wait I’m not making any headway.
I therefore hit on a strategy. I pick my best performing safe stock and bought as much as I could afford. When it went up enough to make it worthwhile I sold. To cover the profit I also sold x amount of the same shares at a loss to free up more cash. When the stock went down again I was able to buy even more shares. I’ve done this three times so far and have increased my portfolio in that stock by 30%. Whole lot better than sitting on your hands.
Sire@WassupBlog´s last blog post..In Search Of Fame And Glory
2 Ned // Mar 17, 2009 at 3:50 pm
Excellent, good work Sire!
3 Sire@WassupBlog (1 comments.) // Mar 18, 2009 at 12:42 am
Oh, I forgot to mention, when I sold those shares at a loss it was to offset the profit, the reason being so that I delay paying tax for as long as possible.
Sire@WassupBlog´s last blog post..Chitika The Mark Of A Good Affiliate
4 Michael Dunlop (1 comments.) // Mar 24, 2009 at 12:26 pm
And he is right! This is for sure the best time, some of the greatest companys where created in a recession.
Michael Dunlop´s last blog post..Hongkiat Lim Interview – Quitting Your Day Job To Become a Problogger
5 Ned // Mar 24, 2009 at 1:11 pm
Hey Michael,
Thanks for stopping by. You are right. If you can make money in a recession you can make money anytime.
6 Kevin Phoenix (2 comments.) // Mar 24, 2009 at 1:57 pm
Even when I worked with Lord Rothschild, I was amazed at the numbers of private clients who did not get this point: Sell on the way Up (you never know when you’re going to reach the top) – Buy on the way Down (why buy when it’s expensive?)
Kevin Phoenix´s last blog post..Personal Financial Rescue Plan
7 Ned // Mar 25, 2009 at 12:52 am
Kevin,
Welcome, thanks for reading and commenting. I loved the tour video on your site.