Each time a crisis happened, stock markets would MELT but would always return. He has always MADE it a POINT to buy on crisis and sell on euphoria.
said to him, "Uncle, you have always lived modestly. How come you never behaved
as though had $2m in the bank?"
His reply was that he always kept a pool
of money READY to deploy when CRISIS occurs. The Asian crisis was the WORSE he
has ever experienced and therefore he had to DEPLOY the MOST (yes, the MOST)
amount of his capital. In the meantime, he plays bits here and there just to
keep abrest of what's happening.
This fine gentleman thought me all
about Templeton's maxim number 7. "Bull markets are born on pessimism, grow on
scepticism, mature on optimisim & DIE on euphoria."
He taught me
that the time to BUY is when there is MAXIMUM pessimism, and the time of maximum
optimism is the best time to SELL.
So Goldcast, there is a lesson for
you and me. It is not how OFTEN you buy that makes you money. But it's knowing
WHEN to buy that would make you rich. It's also having the right temperament for
investing. Be BOLD when others cower in fear and be fearful when others are
Hope this helps you to understand a bit more about yourself and Mr