Warren Buffets Investing Lessons from Financial Crisis 2008

Investing

Warren_Buffet

Warren Buffet. Investor extraordinaire and one of the rishest individuals in the world. He is also one of the calmest individuals in the world. The financial crisis 2008 did not sway him like many investors, politicians etc. In fact, Warren Buffet was so confident in the strength of the U.S. and world economy that he plowed money into GE, Goldman Sachs and BYD near the low point of the financial crisis.

I like Warren Buffet’s lesson here. Buy stocks when the market is at a low point. The credo to buy low and sell high is very important to investing. Warren Buffet hits it home when he says: “Be fearful when others are greedy and greedy when others are fearful”. With Buffets logic, when investors are greedy stocks are inflated and when investors are fearful stocks are low.

Another Buffet investing lesson comes from what stocks he invested in during the financial crisis. Is every stock out there a good buy when the stock is low? No. Buffet would be the first to stress a stock is literally a piece of a company. And if you buy a piece of a terrible company, you own a piece of a terrible company. GE, Goldman Sachs and BYD are great companies. Warren Buffet scored by investing in these stocks when prices were depressed.

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