
Originally Posted by
dnomac
i read these articles on a weekly basis on yahoo finance. Not to discredit the authors article, but i don't let these articles influence my trading strategies. I tend to stick with blue chip stocks that are at their low end of their cyclical valuation, have strong dividends, and strong earnings. I basically follow buffets strategy, "be fearful when others are greedy, and greedy when others are fearful." another interesting thing i found was that buffet's portfolio was grossly disproportionately invested in financial services and consumables. It would make sense that he pulled out and diversified into something else. If he divested that much of his portfolio, he must have a shitload of cash on hand. I'd be interested to see how he reinvested it. That is the untold side of the story that could be just as revealing.
I was lucky enough to begin investing around 08-09 right when the market was taking an enormous shit. Net everything, my portfolio is up 35% (on some other positions i sold off, i made more than a 100% return). I think it's important to avoid knee-jerk reactions, be patient, do your homework, and realize it is a marathon rather than a sprint (unless you're daytrading with a fatass bank roll). Whatever scenario you anticipate, keep the portfolio diversified!!