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Millionaire Money Habits

July 28th, 2008 at 11:40 am

When in Doubt, Do the Opposite

It’s no argument that Warren Buffett is one of the greatest investors to ever live, if not the greatest. When Warren speaks, the entire financial and investment world listens. While many successful investors will go on to critique and disagree with his statements, more often than not he is right.

In short, it would be foolish to not take his advice.

One of his most notable philosophies is to do exactly the opposite of what everyone else does. “Be fearful when others are greedy and greedy when others are fearful.” This, he has said during interviews, is the strategy that has made him rich.

It’s during these times, when everyone else was scared, that he invested in the market as a whole or in a particular company that offered opportunity. While others may have thought Buffett was being foolish and taking too big a risk, he saw at as absolutely no risk at all. Companies that were highly valuable were selling at rock bottom prices. During these volatile times, like we are experiencing now, are exactly the circumstances that allowed him to make the most wealth.

So as you look at your 401k statements and compulsively check your Ameritrade balances, remember your ultimate goal. Keep a level head and trust that Buffett knows exactly what he’s talking about.

If I had only listened to him when stocks hit an all time high last summer . . .

Millionaire Money Habit: Remember that it is a good thing that markets are volatile. It provides you with an opportunity to make money, but it also tests your ability to keep a level head. The only time you actually are guaranteed to be a loser with your investments is when you sell at a loss.

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