Buffett: “The Lower Stocks Go, The More I Buy”

FORTUNE — “There is no comparison between fear and greed,” Warren Buffett is telling me over the phone from Omaha. “Fear is instant, pervasive and intense. Greed is slower. Fear hits,” he exclaims.

I am NOT recommending a wholesale purchase of equities, but rather use this quote from the article below as a reminder how the professional investors think.  You have to keep your emotions in check to the best of your ability.

Buffett-link

Buffett’s Favorite Valuation Metric

I’m a big fan of Warren Buffett (as many of you know) as I admire his intellect, drive, and humility. There’s a reason he’s in the top 5 richest in the world.

Warren Buffett has a chart that he’s described as his favorite. It’s the total valuation of the stock market versus the Gross National Product of the US.

What is it telling us now? A = Stocks are modestly expensive.

Should you sell everything to cash? A = No. It does, however, tell us to be very cautious going forward and watch the percentage we have allocated to the equity markets.

Do you know what the percentage of your portfolio is exposed? If not, please contact me and I’ll do what I can to help you out.

LINK TO FULL ARTICLE

Don’t Buy What You Don’t Understand

If you’ve been reading my blogs and watching my videos religiously, I not only love you, but you’ll also know that I’m a big Warren Buffet fan.

One piece of sage advice he has given that I agree with is “don’t buy something you don’t understand”.

In this week’s video, I expand upon that and talk about how I was once pitched one of the instruments that lead to the financial disaster of 2008. It just didn’t make sense to me, so I didn’t recommend it to clients.

Be sure you have good transparency, understanding, and a tolerance for the risk for any investment you make.

Take a few minutes to watch/listen to my video