It means: when everyone is greedy, it means that the market is not far from the end. I have to have fear and quit as soon as possible to maintain victory; Because the market has been in a long-term downturn, when everyone is afraid to enter rashly, I should bravely enter, so as to get good profits.
Extended data:
Investment principles of Buffett system;
The principle of stock selection: look for superstar enterprises. This truth is easy to understand, as the saying goes: catch the thief first.
Valuation principle: long-term discounted cash flow method. Is to calculate the intrinsic value of the enterprise first.
Market principle: the market is a servant, not a guide. In fact, we often say that to be the master of the market, we must know what we know. Buffett particularly emphasized: fear when others are greedy, and be greedy when others are afraid. It takes a long time to practice.
Purchase price principle: margin of safety is the cornerstone of success. Margin of safety is a technical term. He believes that "margin of safety" is the core of value investment, which actually requires us to invest when the price is lower than the value to a certain extent. This is closely related to the valuation principle, but judging the intrinsic value of an enterprise requires professional knowledge and skills.
References:
Public trust. Com- Buffett clearance Nestle and other 8 stocks are afraid when others are greedy?