Warren Buffett: Paralyzed for some reason

“Investing is really not complicated. I mean, the basic framework for it is simple. Now, you have to work at it some to find the best pockets of undervaluation…. But you didn’t have to have a high IQ—you didn’t have to have lots of investment smarts to buy junk bonds in 2002 or even to do some of the stuff that was available when LTCM got in trouble. You really just had to have the courage of your convictions. You had to have the willingness to do something when everybody else was petrified. But that was true in 1974 when we were buying stocks at very, very, very low multiples of earnings. It wasn’t that anybody didn’t know that they were cheap. They were just paralyzed for one reason or another.”

—Warren Buffett.