2 upvotes, 1 direct replies (showing 1)
View submission: Don't invest recklessly
Be fearful when others are greedy, and greedy when others are fearful.
Don't those two go hand in hand? I mean at the moment there must be a lot of fear that BTC could collapse, but there's simultaneously a lot of greed. So what do you do. Some are fearful, others are greedy. I think your quote's first line makes more sense. Or to put it another way, greed is good, but not too much greed.
Comment by sir-draknor at 08/12/2017 at 22:59 UTC
1 upvotes, 0 direct replies
I've always interpreted it to mean - "don't invest based on emotion (& following the market swings), invest based on rational evaluation of price to value".
Which means - don't invest in Pets.com in 1999 just because it's the Dot Com boom and everyone's throwing money at anything "on the internet".
It also means - invest in well-run banks, newspapers and railroads that have good business fundamentals, but that everyone's running away from because they are so "last century".
In my opinion...
to put your investments for growth. *Because Bank of America, Lee Enterprises, and BNSF Railway aren't going to produce explosive growth*
Just that this method should provide you a steady, relatively safe portfolio that should let you sleep well at night.