“Be fearful when others are greedy, and be greedy when others are fearful.” Warren Buffett

As the financial markets around the world melted down last October, Warren Buffett wrote an op-ed piece in the New York Times from which the above quote came.  It was entitled Buy American.  I Am.

In the piece he writes, “The financial world is a mess. . . .  So . . . I’ve been buying American stocks.”  He states, “I can’t predict the short-term movements of the stock market. . . . What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up.”  He then devotes the rest of the article to giving a short history of market cycles and the continual upward march of stock values even through difficult times.

He was early to the party, however.  The stock market continued to plummet for five more months before bottoming.  So what he bought in October went down.  He was criticized as out of touch and irresponsible.

When I referenced this article with clients to give them encouragement, a few responded, “But he’s so rich he has money to lose.  I don’t.”

I responded, “No, he’s so rich he has no reason to gamble.”

Thankfully, most of my clients took these words to heart and held on, many invested more.  A few gave up and paid dearly for it in their net worth.

As I write this, one year later, stock values have recovered to where they were when Buffett wrote this article.  He continued to buy through the downturn.  He bought good investments, on sale, when others panicked selling out at any price.  Many of those investments are already up 50% or more and will continue to grow over the coming years.  He capitalized on other’s irrational fears, which is why he’s the most successful stock investor of all time.

We all lived through the same circumstances.  Yet many let the never ending parade of “experts” predicting the end of the world beat them into the ground.  Thousands bailed out at the worst possible time losing half their net worth or more.  They hoped to catch the growth train before it pulled out of the station.  But the train always pulls out at night in a raging storm and they missed it.

Many stopped making contributions to retirement plans and IRAs.  They missed one of the greatest investing opportunities of their lives.

How about you?  Did you invest more when your friends panicked?  Did you stay invested as the storm raged?   Or did you cave in?

What gives us staying power, courage in the midst of surrounding fear?

The bible says, “Anxiety in a man’s heart weighs it down, but a good word makes it glad.” (Proverbs 12:25, NASB)

Fill your mind with positive facts instead of allowing it to be polluted with negative news.

First, focus on God’s promises. He promises to take care of you and bless you.  He promises you true wealth and prosperity.  His power isn’t dependent on the economy or the stock market.  He works his greatest miracles when everything else fails.  That way we know it’s him.  Look up his promises.  See what’s there.  What applies to your life and circumstances right now?

Second, focus on history. None of us can fore tell the future.  Not even the so called experts on TV.  Buffett gained his perspective from understanding what has happened before rather than trying to guess what will happen in the next week or month.  That gave him confidence to act boldly when everyone else was running for cover.  Read some books on investing and financial history.  It’ll be a great investment in your future.

Third, focus on the good. While the news media fixated on the few companies that failed there were hundreds of others who succeeded.  They still produced goods and services people needed and bought.  They made profits and increased net worth.  Unemployment rose to nearly 10% which meant 90% of Americans who wanted jobs had them.  There were real problems.  But also there was far more good than bad going on, it just rarely makes to the front page.   Find a few commentators who seem balanced.  The good ones weave in a perspective of history into current events.  I have links to some in my blog home page.  Turn off the TV and it’s sensationalized nonsense.

The result? Gladness–joy.  Worry weighs you down, literally.  A positive outlook lifts you up.  It gives you staying power.  You’ll think clearer, make better decisions so you can take advantage of the circumstances.  It makes a huge difference in achieving your financial and personal success.

What do you fill your mind with?  Is it time to guard it, fill it with good words?  Let me know what happens.

If this post helps you please let me know and share it with your friends through email, Facebook and Twitter.  I apprecitate it. D

Important Disclosures:

Douglas Armey, the LPL Financial adviser associated with this website, practices in Fresno, California and may discuss and/or transact business only with residents of the following states:  California, Idaho and Oregon.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance reference is historical and is no guarantee of future results.

Securities offered through LPL Financial, Member FINRA/SIPC.  Member of Securities Investor Protection Corporation (SIPC).  For an explanatory brochure please visit www.sipc.org.          www.finra.org