Jump to content

“Be greedy when others are fearful…”


frank_d
 Share

Recommended Posts

OK so that’s one of Warren Buffett’s infamous quotes.

Here’s the full quote:

“it is wise for investors to be fearful when others are greedy, and greedy when others are fearful.”

Why I am mentioning it?

Two reasons:

A) the stock market is currently at the tail end of a bull run and the bear market is slowly bringing everything down.

B) Remember when Fiverr stock went as high as $300 at some point? A lot of people mentioned how they regretted not jumping in when it was much lower. 

Well it’s currently sitting at $30.

My entry point was even lower than that when I first purchased the stock as soon as it went public.

So if anyone missed out back then and still believes in the company, now is a great chance to get in.

Of course this isn’t Fiverr specific. Amazing companies with solid financials and a great business model are currently 60%-80% down.

I am not a great trader myself, I am a long term investor and I only invest in companies I know about to diversify my portfolio.

But what I do know is that at some point in time, the market will turn again and those companies’ stock price will go back up.

I am not encouraging anyone to invest in the stock market of course, I’m just saying that this may be just what mr Buffett was talking about. There’s a lot of fear in the market right now and prices are reaching all-time lows. Maybe this is a great entry point if you ever wanted to invest in a company.

What do you guys think? Anyone else hold stock in any company?

 

  • Like 9
Link to comment
Share on other sites

I spent about a year investing in stocks, I had some wins and some losses, so as I had a lack of knowledge and experience decided to take out my money, rather than risk losing. I have been thinking more recently of investing in a global multi-asset fund and use someone else's experience to profit. I do have money invested in crypto's and NFT's and have done well, but right now they're experiencing the same big drop in the market. Real nail biting stuff if you haven't experienced it before, but I have experienced it a few times and I'm not over-exposed, so I'm patiently waiting it out and grabbing a few bargains at the same time!

  • Like 5
Link to comment
Share on other sites

I've watched a lot of the insightful views/advices of Warren Buffet and Charlie Munger lately. It has become a sort of calming therapy for me to hear those men speak and listen to their thoughts!

I'm by no means a financial expert nor do I understand everything about it. I became interested in it when the interest rates on my savings account were basically nothing so I thought to myself if I'm just going to let my money sit somewhere, can't I park it somewhere where there's at least a possibility for a higher return?

Since my goal is nothing specific (especially not trying to 'get rich quick'), my investment horizon is about 30-40 years. With my limited knowledge, ETF's turned out to be the best option for me. There I can just let it sit and in my opinion any extra Euro I make on it is a bonus, since I wouldn't have had that if I kept my money in my savings account. I focused on sectors like technology & clean energy, as well as different countries (North America, Europe, emerging countries). Although diversifying my ETF portfolio is still something I find a bit difficult. But more understanding about all that will come with time 🕵️‍♀️

1 hour ago, frank_d said:

Maybe this is a great entry point if you ever wanted to invest in a company.

One thing I do know is if you cannot set your emotions aside, investing is probably not the best option. So with that in mind, seeing the market go down should indeed be seen as an opportunity. But most importantly; time in the market beats timing the market! 

Edited by sabinespoems
  • Like 4
Link to comment
Share on other sites

4 hours ago, frank_d said:

What do you guys think? Anyone else hold stock in any company?

Great stuff Frank.  Buffett also said “The stock market is a device to transfer money from the impatient to the patient.”

I put all my eggs in funds that mirror the S&P 500.  If Microsoft, Apple, Pfizer, Berkshire Hathaway, Amazon and the other 495 largest companies in the world go poof, there is no money anywhere on the planet.   10 year chart below:

snp500-vs-cpi-10y.png

Edited by newsmike
  • Like 4
Link to comment
Share on other sites

Good points well made.

If you have the cash it's a great time to buy (almost anything) and hold for the long term.

'Time in the market' beats 'timing the market' 99% of the time. It's why index trackers (as @newsmikedid with the SP500) consistently beat fund manager performance.

Feel the need to say this is not financial advice, do your own research and only invest what you can afford to lose.

Specifically to fiverr, I think if (when!) this bear run really hits, people will lose jobs. Some will turn to freelancing, others will try to start their own businesses. Either way fiverr could benefit.

I personally think this is only the start of a massive economic downturn. It will make 2008 look like a picnic. Inflation will continue to rocket, interest rates will have to rise and governments have already overused the quantitative easing magic pill.

  • Like 4
Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share

×
×
  • Create New...