very very few investors - even professional ones - are capable of behaving like Warren Buffett, and buy when others are selling and sell when others are buying. Most move with the herd and with conventional wisdom.
I undertsand that WB did not make his fortune just by buying high and selling low (!): he bought a failing company
and managed it for many years until it got profitable again.
Completely agreed, but then Mr Buffett is a rarity amongst investors of any stripe - and he also gets it wrong from time to time. The point I was making regarding WB as opposed to the vast majority of investors is that he looks to buy while assets are being sold by the majority, and to sell into Strength. The fast majority of investors including the so called professional street look to ride trends - thus the phrase "The Trend is your Friend" - this means buying assets that others are buying and selling assets that others are selling.
A lesson all the banks should have learnt - and we should all take to heart - Sell When You Can, NOT When You Have To.