The legendary investor Warren Buffett—according to many websites—gave his secret to becoming rich in a closed-door lecture at Columbia University when he was only 21 years old (that would be 1951). “Close the doors,” Buffett demanded. “I will tell you the secret of getting rich on Wall Street. You try to be greedy when others are fearful and you try to be fearful when others are greedy.”
An old Wall Street proverb is: “Fear and greed move markets.” Buffet’s quotation is cited in print from only 1995.
During the economic crisis of 2008, Buffett’s October 17, 2008 “Buy American—I am” editorial in the New York Times stated: “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
Wikipedia: Warren Buffett
Warren Buffett (born August 30, 1930) is an American investor, businessman, and philanthropist. He is one of the world’s most successful investors and the largest shareholder and CEO of Berkshire Hathaway. He was ranked by Forbes as the richest man in the world during the first half of 2008, with an estimated net worth of $62.3 billion.
Often called the “Oracle of Omaha”, Buffett is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. His 2006 annual salary was about $100,000, which is small compared to senior executive remuneration in comparable companies. When Buffett spent $9.7 million of Berkshire’s funds on a business jet in 1989, he jokingly named it “The Indefensible” because of his past criticisms of such purchases by other CEOs. He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500 and today, it is valued at around $700,000.
Buffett also is a notable philanthropist. In 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation. In 2007, he was listed among Time‘s 100 Most Influential People in The World. He also serves as a member of the board of trustees at Grinnell College.
Wikiquote: Warren Buffet
Warren Edward Buffett (born 30 August 1930) is an American investor and the CEO of Berkshire Hathaway.
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
- Lecturing to a group of students at Columbia U. He was 21 years old.
Buffett: The Making of an American Capitalist
By Roger Lowenstein
Published by Doubleday
“I will tell you the secret of getting rich on Wall Street. [Pause.] You try to be greedy when others are fearful and you try to be very fearful when others are greedy.”
Google Groups: misc.invest.technical
Newsgroups: misc.invest.technical, misc.invest, misc.invest.canada, misc.invest.funds, misc.invest.stocks, tor.general
From: (Roger Zeng)
Subject: Personal Finance Newsletter: NEX VIEW, April 1998
What do you need to remember about your investment portfolio?
“... try to be greedy when others are fearful, and fearful when others are greedy.”—Warren Buffett
New York (NY) Times
Buy American. I Am.
By WARREN E. BUFFETT
Published: October 16, 2008
THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.
So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.
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. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.
New York City • Banking/Finance/Insurance • (1) Comments • Saturday, October 18, 2008 • Permalink
The always present news about Warren Buffet, Chairman of Berkshire-Hathaway, make it easy to come to the conclusion that he is a great investor and a fund manager with a wide following among other investors.
Currently, technical market indicators are bearish and so are the fundamentals of the US economy. It will take 3 to 4 months of consecutive rises in the index of leading economic indicators, employment figures, GDP, retail sales, consumer confidence, housing starts, and other economic data to assure investors that a rally in stock prices is real. Many investors will also wait for the next administration to unveil its fiscal and monetary policies.
Mr. Buffet is a long term investor. He doesn’t mind if the market goes down before it rises to higher levels again.