The Daily Buffett

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Dare to Diverge

August 18th

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

Warren Buffett

The art of contrarian investing is not simply about going against the current market trends. It is about having the courage to question the euphoria of the crowd. When everyone is buying, it's easy to get carried away. Yet caution is warranted here. A rising market often disguises overvalued stocks.

Similarly, when fear pervades the market and others are selling, it's tempting to join the exodus. Yet, it's precisely in these moments of market pessimism where one can often find undervalued assets worth investing in.

However, this isn't just about market trends. It's a call for emotional discipline and independent thought in investing. Challenging the consensus requires questioning whether the current enthusiasm is justified. And when others see only risk and doom, it's about seeing opportunities.

In the world of investing, the crowd is seldom right, and the strongest investors are those who can distinguish the noise from the signal.

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Copyright © 2023 by Scott Sansovich