When People are Fearful, be Greedy!

When People are Fearful, be Greedy!  This is a now famous quote from billionaire Warren Buffett in the fall of 2008.  Buffett said, "When people are fearful, be greedy, and when people are greedy, be fearful."  Critics who have mocked the Billionaire's investment strategies, have had to (as The Wall Street Journals puts it) sit down for their traditional three-course meal: humble pie, their own words and a little bit of crow.

Warren Buffett was featured on MSN's home page today in an article written by The Wall Street Journal discussing the "Billionaire Basics."  The world's most famous investor lays out his basic principles of investing in this year's annual letter to Berkshire Hathaway shareholders.  Here are the top 6 tips he recommends for investors in todays' market.

1.  Stay liquid.

2.  Buy when everyone else is selling.

3.  Don't buy when everyone else is buying.

4.  Value, value, value.

5.  Understand what you own.

6.  Defense beats offense.  

In my mind, Warren Buffett's quote rings true in any real estate market.  When people are fearful, be greedy.  And, when people are greedy, be fearful.  There is something to be said for listening to this intelligent old-timer!