Warren Buffet on the aftermath of AIG, explaining the opportunities present during volatile times. Somewhere in the book I'm reading he explains the basis for his and Munger's success as ignoring the bad advice and examples around them and sticking to rational thinking. "...we try to get fearful when others are greedy. We try to get greedy when others are fearful. We try to avoid any kind of imitation of other people's behavior. And those are the factors that cause smart people to get bad results."
When people are panicking and selling, the Buffets and Mungers of the world are calmly looking for the best buys; when everyone is spending like crazy, they are sitting and watching the prices rise and evaluating. They systematically do the opposite of what the uninformed and emotionally swayed public is doing. They have to, otherwise they don't pick up the right side of any given market.
So many lessons can be learned from this, and it goes right along with Greene's advice in the forward to The 48 Laws: controlling one's emotional responses to any given situation is critical in life.
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