National Bank of Greece ADR (fka NBGGY)

[dabonenose]

This is an excerpt taken from:

"Here’s What Warren Buffett Is Doing With His Money

by
Ben Kramer-Miller


Read more: http://wallstcheatsheet.com/business/heres-what-warren-buffett-is-doing-with-his-money.html/?a=viewall#ixzz39zyVoUly

3. Be greedy when others are fearful, and be fearful when others are greedy

Once you have decided which companies to buy using the first two pieces of advice, you need to know when to buy them. As with anything else you buy, you want to get a good price. However, the market fluctuates wildly and frequently, and this adds an emotional element to investing that this piece of advice helps you avoid. When stocks go down, people often assume it is for a reason (i.e., the downturn is justified). Similarly, when a stock rises, people often assume that it is because the company is improving. But market price fluctuations do not have any necessary correlation to a company’s fundamentals. As a result, you want to pick out companies to buy and then wait for the hit prices that you feel make them worthwhile investments.

This piece of advice depends on the first two mentioned. You cannot be confident in buying a falling stock, especially if it goes down even more after you’ve first bought it, unless you are confident in the company’s underlying business. For this to take place, you need to understand how and why the company makes money, how and why it will continue to make money, and what makes it such a great company. If you can figure this out, then you can have the confidence to buy when there is proverbial blood in the streets."