LEARN TO USE THE UNCERTAIN ECONOMIC CLIMATE TO YOUR ADVANTAGE
I’ve always loved Warren Buffet’s approach to investments. He has been a “far off” mentor of mine for a long time. One of his sayings has always stuck with me: “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
We should apply this to property investment as well. Currently, there is a lot of uncertainty and fear in South Africa. However, it is this very uncertainty and fear that is creating opportunities to purchase properties from panicked sellers who have no regard for the intrinsic value and long-term economic worth of the properties they are selling.
Warren Buffet also said: “Uncertainty is the friend of the buyer of long-term values”. We often fall into the trap of thinking that when the economy is doing well that it will never make a turn for the worst and when the economy is not doing well that it will never improve.
This is why I am buying as many properties as I can get my hands on, while others are selling. Because of the slow economy, I am buying property at great prices. The economy is not going to be slow forever, but I sure hope it stays like this for a while so that I can expand our asset base further.
As Warren Buffet said: “What we learn from history is that people don’t learn from history.”