Surely it’s no coincidence; with just about every significant market pullback the really smart investors do the exact opposite to what “mum and dad” investors are tempted to do. As evidenced by the headline that was in the SMH recently, "As others sell, Buffett goes Shopping" Warren Buffett has once again been investing when others have been heading for the door.
'The billionaire investor has invested $US500 million a week adding to his sherholdings even as the Dow plunged 10 per cent at one point." In the article Buffett said “he bases his investments on a company's prospects over the next five or 10 years, and he encouraged investors to take a long-term view”. Enough said.