A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful

Warren Buffett

This phrase is one I believe resonates deeply amongst investors, especially value investors. It depicts the mindset of a great investor and how they should react when the stock market keeps breaking new highs or tanks. The point Buffett is driving at is that one does not get rich by buying into a high market or selling into a falling market. Instead, one gets rich through taking a contrarian approach, buying into market corrections and beaten-down markets.

The point of this article is not to stress on on this mindset, but rather Conviction vs Foolishness. As much as these phrases contains much wisdom, one must be mindful of the many caveats that comes with it. Being greedy when others are fearful is indeed the right mindset one should adopt when ...