03 May 2011

Is this a good time to start investing

When is a good time to start investing. Is today a good time to start investing or should we wait for better times. In my book of investing there are only two times one should invest and these times come either  now or when there is blood on the floor.


Irrespective of market tops and market bottoms, now is the time to invest because now is when time is on your side and you can fully leverage the incredible strength of compounding. Investing now should be done with with discipline and care.

The best of times to start buying

The next best time to invest is at times of great panic when there is fear all around. This is the time when both rubbish and value is available cheap. The smart investor is able to buy in the panic focusing on the value and avoiding the rubbish.
What we do know, however, is that occasional outbreaks of  those two super-contagious diseases, fear and greed, will forever  occur in the investment community.  The timing of these epidemics  will be unpredictable.  And the market aberrations produced by  them will be equally unpredictable, both as to duration and degree.  Therefore, we never try to anticipate the arrival or departure of either disease.  Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.  - Warren Buffett

Nothing could get better if now is a time of panic and one is buying value and avoiding rubbish. This would be a sure shot way to great successes.

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