Warren Buffett is undoubtedly the world’s best investor. Aside from his excellent ability to analyze a company’s fundamentals, he is also very good in knowing when to buy stocks and when to sell it. While knowing when to sell is quite tricky, knowing when to buy stocks the Warren Buffett way is easy. The ideal on when to buy stocks is to “Buy low and sell high.” Ironically most people only pay lip service to this fundamental principle on when to buy stocks because what most are doing is exactly the opposite. For example in 2007 people were asking the “experts” when to buy stocks. The “experts” said “now” in order not to be left behind. The Philippine stock index (PSEi) was at 3800 points (from a mere 1000+ points) The “experts” at that time were saying that it will reach 4400 points. At 3000 points, people want a slice of the action so they jumped into the band wagon and bought when stocks were at its all time high. The PSEi eventually reached 3800 points but never went … [Read more...]