Tips from Warren Buffet
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“..Be fearful when others are greedy and to be greedy only when others are fearful.” Warren Buffett.
Blake Reese -told me this quote and now it is one of my favorites. With so much fear in the market, placed in every nook and cranny by the media, its easy to forget that now is the time to invest in real estate and to rack up an impressive investment. portfolio.
Leveraging debt in the correct way is something that all of us, even the best real estate investors, could get better at. But as a tool, debt is invaluable right now. It just needs to be leveraged properly.
Posted by Admin on January 21, 2009
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January 26th, 2009 at 9:00 am
When the market is down, this produces a buying opportunity. Generally speaking, the propensity of people is to avoid making purchases when the market is low for fear that it will cease to exist. On the other hand, when the market is going up and there is no end in sight, people tend to become greedy and invest their money for fear they might miss out on significant profits. This is the opposite of what Mr. Buffet is suggesting. He is saying that when the markets are moving up this is the time to be wary. When the markets have fallen and people are afraid to invest, this is the time to jump in.
I remember back in 1988 when the RTC was selling properties at greatly reduced prices. My financial education had not progressed at that time to the level to be able to understand what was happening. It appears that these days are here again.
The question I have to ask myself is whether I will be a part of it or let it pass me by again? The markets, real estate and stock are down significantly. People with cash are able to capitalize on the economic fears of people without.
Baron Rothschild, in the 18th century said “The time to buy is when there’s blood in the streets.” This contrarian style of investing reminds me of the concept Warren Buffet is describing.
January 27th, 2009 at 10:27 am
Well said Glen. One of the problems we’re seeing with a lot of our investor groups is that there’s just a lot of investor funds that are tied up right now. However, for those investors who didn’t make bad investments over the last few years and are sitting on a nice nest of cash, get in the game.