The Sages by Charles R. Morris

The world has seen many disruptions to the financial markets of late, some of which I would describe as "violent". Many of us have sought to understand the factors that have caused such turbulence but clear answers have eluded us. For one thing, there are many gurus who proclaim to know of the reasons and the solutions but who exactly is right? The subprime debacle in the US has cost billions of dollars in perceived wealth to be written off, leaving many Americans in a lurch, even until today. And its economy has shown few signs of recovery. The world has been affected adversely too.

In the gloomy clouds of such a background there are many who see opportunity and have proven that there are principles that one can observe to make money from investments during such times of pessimism. Hence, "The Sages" such as Warren Buffet, George Soros and Paul Volker. They tell you what they usually do and how they did it.

But a word of caution though. Never, never be guided by greed under the guise of wisdom from these gurus. Greed blinds a man to reason and moderation. Greed always leads a man to the path of destruction. Listen to the sages (wise men) but always be alert and don't be greedy. And never put all our eggs in one basket. The sages won't be around to bail you out.

Always be mindful that the financial models today are very different from the ones that we used to know. Being conservative may not make you lots of money but it also ensures that you don't lose your pants when others do!

Happy investing!