“Be greedy when everyone is afraid, and be fearful when everyone is greedy.”

It is attributed to the famous American investor Warren Buffett. This principle reflects a deep understanding of collective psychology and the dynamics of financial markets, and points out the importance of making investment decisions based on rational analysis rather than emotions.

Interpretation of principle#

. **Greed with fear**:

- When the market is in a state of panic, when prices are low due to mass selling and fear of losses, Buffett sees this as the golden opportunity to buy. In these times, many assets are underpriced due to unjustified panic.

### The importance of the principle

- **Rational investment**:

This principle reinforces the necessity of rational thinking and avoiding emotional decisions in investment. Emotions such as fear and greed can lead to irrational decisions and financial losses.

- **Long-term investment**:

Buffett is known for his long-term approach to investing. The idea here is that investing based on deep analysis and actual opportunities can lead to sustainable profits over the long term, rather than quick gains and huge risks.

- **Balance and Strategy**:

This principle also reinforces the importance of balance in the investment portfolio and the ability to adapt to market changes in a thoughtful, strategic manner.