When it comes to investing in equities, emotions always get into people's way. When the price goes up, people FOMO (Fear Of Missing Out) and they buy it, but when the prices drop, people get nervous and panic sell.
One of the key lesson that can be learned from Warren Buffett "Be greedy when others are fearful and be fearful when others are greedy!". Just by using this one quote, you can make profits even when everyone is in losses.
Looking back on hind sight at the stock prices for certain companies, I wished I have loaded up more shares, but was to afraid to. Now I am kicking myself to not have added in more positions while seeing the prices go up.
Through this, it has taught me to not be FOMO and jump in as of now but wait for the correct time and sit on a cash pile that is increasing. Takingreference from Warren Buffett, he was sitting on a $100 Billion cash pile at the end of 2021 since he saw that there was nothing to buy.
What are your thoughts?
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