Be fearful when others are greedy

Meaning: Excessive optimism in markets creates dangerous bubbles; prudent investors withdraw when irrational exuberance peaks.

Origin: From the investor Warren Buffett, who wrote in his 1986 letter to Berkshire Hathaway shareholders: "we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." He repeated it in a 2008 New York Times opinion piece, at the depth of the financial crisis.

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