The best chance to deploy capital is when things are going down.
Source: Berkshire Hathaway Letters · Investing · Psychology
Core Idea
Buffett means investors should be prepared to invest aggressively during market downturns, when fear-driven price declines create rare opportunities to buy quality assets at significant discounts.
Practical Application
When markets fall and others panic, review your watchlist, confirm business quality, then steadily buy undervalued stocks instead of fleeing, turning temporary fear into long-term opportunity.
Why It Matters
Real wealth is built by acting rationally when others are fearful, using temporary market declines to buy strong businesses at bargain prices instead of fleeing with the crowd.