United Kingdom in the financial times: follow Warren Buffett's cut bottom shall reconsider _plusbelieve

United Kingdom financial times Web site on October 22, published an article entitled "follow Warren Buffett's cut bottom must think twice", summarized as follows. We all know, when the clean shoes boys to provide investment advice, and you'll find the time to sell. When the saints "Omaha" (Omaha, Nebraska for the United States, "geographical shares God" Warren Buffett's birthplace, · Berkshire · Hathaway Company's place of registration, each year in the Warren Buffett's Omaha hold annual general meeting of shareholders of the company. ) To provide you with investment proposals, how do you do? · Warren Buffett announced last week, through personal accounts to buy stocks. "When others are greedy, others fear fear when greed," he suggested. This is not the first time such a proposal. Buffett's recommendations on wrong? long-term earnings data shows two points: first, to historical standards, United States stock seems to be relatively inexpensive, the second is the United States stock market continues downward. Although in principle, Buffett's proposal is reasonable, but in practice it is not easy. Three months ago, when the credit crunch continues for months, Fannie Mae and premises and is pronounced as troubled, stock market investors were frightened. Their fear is gone? "facts do not. Today we should ask the same question, despite knowing the answer. Warren Buffett gives us a history lesson. He pointed out that the road-Jones index in July 1932 plunged to the bottom, but Franklin Roosevelt served as President of the United States · before rising by nearly one third. That's right, but after finding out the bottom and then easily. If not hindsight, 1929 on the eve of the "Halloween" (October 31) until the market is likely to appear at the bottom: road-Jones index has just experienced two terrible trading days, compared with the previous peak have fallen by nearly 40%. Because when you want to fear in others become greedy, reverse thinking investors pouring into the market. But then the stock market has fallen by 80%. Tragedy is not likely to repeat itself, but are not completely impossible. Nevertheless, in addition to follow history's most successful investor, you may have worse. Some retail investors complain that they neither Buffett so much money, as he did to long-term holdings. In the Internet boom period, very few complaints, and therefore more correct diagnosis is: they have neither intuition, nor the courage to follow Buffett's recommendations. Historically, the typical performance of the stock market investors after market average performance, just do a high buy low sell. Buffett's suggestion is good, it is because not many people listened to his advice. Market timing is a huge "scissors, stone, fabric" game. If you're confident can always take a step-like Buffett, and there is good reason — so be sure to try every possible way to see through the market trend. The risk is that clever clever against being accidentally, in the end investor but only counts himself. For most people, playing "scissors, stone, fabric," the best advice is free to make moves. Based on roughly the same reason, the best investment advice is periodic, fixed investment, and not to seize market opportunities. For those not as Buffett clever people, modesty is the best method.