One of the best ways to find opportunity is to spot “blood in the streets.”
Warren Buffett has said, “Be fearful when others are greedy and greedy when others are fearful.” Sir John Templeton once said, “Buy at the point of maximum pessimism.”
Baron Rothschild would say, “Buy the blood in the streets, even if the blood is your own.”
That’s because fear often breeds opportunity.
It’s one of the world’s greatest wealth-building secrets.
The Rothschild family used it to make millions on the London stock exchange back in 1800. Sir John Templeton used the strategy to quadruple his portfolio after the Great Depression, buying on excessive pessimism. Warren Buffett used this strategy after the financial crisis of 2008 and made billions of dollars.
Even ARK Invest CEO, Cathie Wood uses the strategy, laughing all the way to the bank.
For example, after Robinhood (HOOD) plunged, ARK Invest bought $45 million worth. Since then, the HOOD stock exploded to about $70 a share from its lows. Today, there’s news ARK Invest just bought 2.47 million shares of Zymergen (ZY).
All after the company announced it would not generate product revenue this year, and said that its CEO was stepping down. As reported by Benzinga, “Wood had in May said it believed Zymergen has a unique approach in synthetic biology, including molecular discovery, microbial design, manufacturing scale and that it is watching with interest at the company’s first electronic film product, Hyaline, as evidence of its platform’s strength.”
Buying up the blood in the streets, it’ll be interesting to see how ARK Invest does with ZY.
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