Always Go Opposite Directions

This may sounds weird and illogical, but the fact is most rich man becomes rich by applying this rule, "Always Go Opposite Directions". I had read this in a paper some time ago. Some rich, black man said, when economic situation is bad, it is actually the best time to shop, especially real estates and other investments. This is the time when the properties are at their lowest price, so you willl be able to get them cheap. When good times have arrived, you'll make a profit by selling them.

Well, maybe the man I have mentioned above is not convincing enough, how about Warren Buffet? The richest man on earth, goes on a shopping spree currently during global economic crisis. The crisis allows him to take over or increase his interest in some of the respected companies such as Goldman Sachs and General Electric (GE) etc. Now maybe you should start thinking whether what they have done is right or wrong.

People of olden days often say, "Save it for the rainy day". What they are trying to say is that we should save some money so that we can used them in case we need them during emergencies. I think it is a good idea. If we save when we can, we will be able to go on a shopping spree (buying assets, not luxury goods) during bad times. It is not a bad idea though.

You might ask, what is rationale shopping during the bad times? Well, when times are bad, people will desperately need cash. Hence, they will sell their properties at a price lower than market value. In addition, the demand for properties and other investments will decrease, pushing the price lower. Lower price means you need not spend much to own assets. In other ways, you have actually make a profit from savings. When times are good, people have the cash, they will opt for assets to invest in. More people demand for assets will push the assets prices higher. If you sell your assets which you had acquired during bad times, you will earn a profit.

Doing something different makes you stand out from the rest. Just like going the opposite directions, you will be different, so do your wealth?