“Be fearful when others are greedy and be greedy only when others are fearful—the less the prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs” – Warren Buffett
“A climate of fear is your friend when investing; a euphoric world is your enemy” – Warren Buffett
“Fear is very contagious. It spreads very quickly.” – Warren Buffett
Because fear and greed are unpredictable diseasesrevisit
Related:
- Louis Pasteur: “Chance favors the prepared mind”
- 4-1a4b2b Being reactive is like being analog in the heat of the moment
- 4-1e1 Loss aversion - e.g., the prospect of competitor buying you, and having have to acquire you later at higher cost, are the two biggest concerns which motivate potential acquirers
- 5-1b2.3 Don’t be the turkey—the Black Swan might be a Grey Swan depending on your perspective
- 5-1b4c4 Pay attention to your ‘taboos’ - If there is something you fear unconsciously, you have to face it—and the sooner you solve it the betterdevelop
- 12-1e4 Nothing is objectively and independently good