1. Be fearful when others are greedy, and be greedy when others are fearful.
2. Cash is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent.
3. Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.
4. You should always adapt your consumption to your income. You shouldn’t try and adjust your income to your consumption.
5. If an ark may be essential for survival, begin building it today, no matter how cloudless the skies appear.
First, you want to make sure you have enough cash to get through any financial difficulties that may come up. Second, be prepared to take advantage of investment opportunities that arise during bear markets.
Preparing now can help ensure that you don’t just survive the next bear market but use it to position yourself for long-term success.
Source: Barron's
https://finance.yahoo.com/news/warren-b ... 20402.html
