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The Herd & The Investor

By
Real Estate Agent with Chuck Willman 9334967-SA00

Warren Buffett. He's the second richest American, according to Forbes magazine.

His net worth is pegged at $52 billion, and rising.

... and he got there by investing.

It's a curious thing... this business of real estate investing.

It's easy to find investors when prices are inflating.

It's harder to find them in the decline.

It's only natural. We have a herd mentality... no doubt about it.

Irish Cows by Servaas Goddijn http://www.sxc.hu/profile/Sillyfrog

Maybe it's time to revisit a quote from Warren Buffett.

This Buffett quote was taken from Forbes magazine... He cautions investors to not follow the herd, saying:

 

"try to be fearful when others are greedy...

  ...and greedy only when others are fearful."

                                    -Warren Buffett

There's a lot of fear in the market.

Prices are low.

Interest rates are low.

Yet people are sitting.

A lot of money will be made in the next few years.

Too many people will look back on this time and say, "if only". 

Oh... and if you have a problem with his greed quote.

Warren Buffet is donating most of his fortune to charity.

Comments (6)

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
Hi Chuck it is surprising how people are sitting on the sidelines watching all they great opportunities pass them by.  We have some of the same issues and some really spectacular deals being snapped up by the savvy investor while others are just waiting.  I hope they don't say "if only".  Nice post Chuck.
Jan 19, 2008 09:41 AM
Deborah Burns ~ Seattle Real Estate Agent
Realty Executives -BRIO - Seattle, WA

Very clear and concise, and you summed it up very well with:

"Too many people will look back on this time and say, "if only"." 

When most everyone is too fearful to see the opportunity, just standing on the sidelines waiting to see what happens...a few see the opportunity, evaluate the risks and move in while others wait and see, and miss out....

Jan 19, 2008 09:44 AM
Dan Gobis
Re/Max Newport Realty Corp. - Racine, WI

Investors are very active in my market, Racine, Wisconsin. There are lots of great opportunities in markets that have bottomed out.  There are many that are fearful and predicting gloom and doom, they will withdraw back into their shells once the correction is complete.

Go Packers!!

 

 

Jan 19, 2008 10:00 AM
Judy Orr
HomeSmart - Scottsdale, AZ
Scottsdale AZ and surrounding towns

I'm going to be writing a post about this on one of my website blogs but you did it so well with few words.  In my area we're trying to sell the investor properties (mainly flippers) that bought high, put money in and are now selling low.  Many of these properties are half finished and in foreclosure. 

I've had some pre-sale condo investors beg me to come view their properties.  They wanted me and other agents to spend a half hour of our time to sit with them and help them sell their very poor investment.  That was last year.  I told them I would show their units when I had a buyer for them & did not attend their little broker's open as I had already seen some of these units.  I wrote about it here.

This is a great time to invest and I'm planning on doing it myself this year.

Jan 19, 2008 10:10 AM
Diane McDermott
RealtorĀ®, GRI, Landis e2 Real Estate, LLC - Charlotte, NC
Charlotte NC Real Estate Market
Great  post Chuck and I really like the quote from Warren!!! I'd be willing to bet more than a few will say "if only" in the future
Jan 19, 2008 10:37 AM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com
Thanks for the comments Gary, Deborah, Dan, Judy and Diane. It's always easier to write about an authority on the subject when *that* authority is Warren Buffett.
Jan 20, 2008 11:11 AM