For many investors, this is a time when cash is guarded closely and they are hesitant in investing in anything other than a bottle of wine! But for some investors, especially the rich, who have seen market turmoil before, aren’t afraid to buy in where other's fear to tread!
With the price of many assets tumbling, wealthy investors are diving into markets around the world looking for buying opportunities.
A classic recent example is one of the world's best and most famous investors, Warren Buffett. Mr Buffett has always said investors should be greedy when others are fearful, and he made that very clear this week by investing $US 5 billion in Bank of America.
This 'bargain hunting' purchase comes after the Bank of America had seen it's share price fall by almost half this year and Mr Buffett not only paid a good price for the stock, it also included 700 million warrants (which have a strike price of $US7.12!)
Some reports suggest Buffet’s paper profit is already as much as $US3 billion!
So, are you an investor who dives in where others fear to tread, or waiting patiently in the wings for the anticipated recovery? Definitely food for thought.
