Available Quote by Warren Buffett
“An irresistable footnote: in 1971, pension fund managers invested a record 122% of net funds available in equities - at full prices they couldn't buy enough of them. In 1974, after the bottom had fallen out, they committed a then record low of 21% to stocks.”
About This Quote
Source Letter to shareholders, 1975
Investors swung from over‑investing in stocks to extreme under‑investment, showing market timing errors.
In simple terms: Investors misjudge market timing.
Key Takeaway
Avoid timing the market.
Themes
investment
behavioral finance
market cycles
Mood
analytical
pragmatic
Type
financial
educational
When to use this quote
- personal finance
- risk management
Key Concepts
over‑investment
under‑investment
recorded percentages
Questions to Reflect On
- How to maintain balanced portfolios?
- What signals indicate market extremes?
A Different Perspective
Timing the market is nearly impossible.
![“[The US] budget is dominated by the retirement programs, Social Security and Medicare - loosely speaking, the post-cold-war federal government is a big pension fund that also happens to have an army.” quote by Paul Krugman](https://sms4smile.com/quotes/img-quotes/ed9/paul-krugman-2255_army_the-us-budget-is-dominated-by-the-retire_1183597.jpg)
