Post
Topic
Board Economics
Re: Be greedy when others are fearful...
by
turagsoy123456
on 13/08/2018, 23:55:17 UTC
Quote
I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.
-Warren Buffet


This quote is constantly bandied about as justification to invest in Bitcoin, and especially now that there has been some nice price movement in the upward direction. But this Warren Buffet quote is only relevant with the proper context, which is that Warren Buffet only invests in things he has a fundamental understanding of and can quantifiably value. You can confidently be greedy when others are fearful if you have a sound investment thesis and are a fundamental value investor. This is how he turns his investments into home runs, he knows what he's buying and what it's worth and can weather the negative sentiment until the market learns what he already knows. This doesn't apply at all to a speculative investment like crypto. Following this advice willy-nilly is gonna get you burned because you're misunderstanding the intent and the application.

Don't not buy Bitcoin if that's what you want to do, but don't fool yourself into thinking you're following Warren Buffet's advice. Warren Buffet doesn't speculate, and if you're buying crypto, you're speculating.

Sometimes we need to be greed, so that we can achieve our goals in lifes.  Especially when we are dealing with our investment in crypto currencies. But we have to be careful also for our greed, because to much greed can also  lead us to lose our money. So we have put a limitations to our greediness.