Buffets Quote by Warren Buffett
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.”
About This Quote
Source Speech: Annual Shareholder Letter, Berkshire Hathaway, 1996
Investors should avoid letting excitement or costs drive decisions; instead, they should be cautious when markets are overly optimistic and bold when they are pessimistic.
In simple terms: Don’t let excitement or costs dictate investing; be cautious in optimism and bold in pessimism.
Key Takeaway
Be contrarian: fear when others are greedy, greed when others are fearful.
Themes
investment
behavior
psychology
contrarianism
risk management
Mood
cautious
analytical
contrarian
Type
advice
financial
psychological
When to use this quote
- stock market timing
- portfolio allocation
- risk assessment
- financial planning
- market sentiment analysis
Key Concepts
behavioral finance
market cycles
contrarian strategy
emotional discipline
Questions to Reflect On
- How can you measure when market sentiment is extreme?
- What safeguards can prevent emotional decision‑making?
A Different Perspective
Timing markets is notoriously unreliable; over‑reacting to sentiment can cause missed opportunities.
