Be fearful when others are greedy, and be greedy when others are fearful.

This is the statement given by the "WHITE KNIGHT" Warren Buffett in an article written by him in news column. He said that this is the simple rule that dictates his buying. The statement might look to be philosophical and correlating to the statement given by sun tzu in his "THE ART OF WAR" that when the enemy attacks retreat; when the enemy retreats attack;

This is true as when the markets are booming amateur investors will be greedy to make money with out any knowledge of the market and economic life cycle and even the P/E ratio.When the world is investing the seasoned investor retreats and when the world is selling then the seasoned investor buys!!.

This can be seen in the present crisis situation,when the whole world is selling the two legendary investors Warren Buffett and Soros are investing from America to Australia. Buffett had invested 5 billion dollars in Goldman Sachs and 3 billion dollars in G.E. in preferred stocks. He also said that he is buying American stocks.

so my advise would be to gain wisdom and learn from the mistakes, if you cannot understand the mistake then better leave to experts or opt for mutual funds.

In Proverbs 4:7, the Word of God states “ Wisdom is the principle thing; Therefore get wisdom. And in all your getting, get understanding”. The sad part is that amateur investors often have neither and think that God is speaking for his own health; But He’s not. He’s speaking for ours.