A lot of people are concerned about the sudden exit of the United Kingdom from the European Union. The ongoing trend for globalization which is currently popular was rudely interrupted by the British voters. Many, particularly in Europe, but also elsewhere, are wondering how to financially succeed given this traumatic event.
Thankfully, we have advice from some of the best investors in the world to guide us. U.S. Billionaire Warren Buffett summarized his life philosophy as avoiding what others crave, and craving what others avoid. While other investors are looking warily at Britain, a shrewd thinker would realize that this event is temporary, and the excellent UK economy is likely to rebound. Now, while markets are hurt, is a time to consider investing in the UK. Buying low and selling high may be common sense, but it is often neglected by those who are greedy to follow the crowds. When a quality market is depressed, that is when the smartest pile in. Many people like to buy when markets are soaring, but this puts you at a disadvantage. The only direction markets can go after a jump is down.
Buffett’s mantra, craving what others avoid, can be applied simply. Make a list of the fears that other people have, particularly those who are in your field, as these are your competitors. General fears common to most individuals are: public speaking, death, risk, uncertainty, loss, ugly, dirty, minorities, failure, commitment, innovations, change, religion, etc. Pick a few of these fears from this list (or make your own). Practice them in your investment behavior. As an example, consider China’s huge push into Africa. While Westerners shy away from pouring money into what they perceive as dark, dingy, and undeveloped territory, China is making millions from investing in the valuable natural resources that Africa provides. You too can apply the simple method of pursuing what others avoid to make large profit margins.
The reverse is also true. What are your competitors greedily pursuing? Common things that most people greedily pursue include: easy, gain, profit, safety, familiar, group, practical, white race, beauty, debt, etc. Be cautious about pursuing those variables, because there will be a lot of competition for things associated with what is popular. A lot competition means a high entry price, which saps into your margin.
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