Baron von Rothschild, the 19th-century British banking magnate, had a succinct investment philosophy: “The time to buy is when there is blood in the streets, even if that blood is your own.” The Baron would know: He made a fortune in the panic that followed Napoleon’s defeat at the battle of Waterloo.
Modern-day billionaires echo the Baron’s philosophy. Warren Buffett and other “contrarian” investors scoop up deeply discounted corporate assets whenever markets turn down. In Buffet’s own words: “You pay a very high price in the stock market for a cheery consensus.”
Of course, in a depressed market, cash is king. It’s likely that von Rothschild and Buffett had money to invest. Even teenage entrepreneurs know the adage “it takes money to make money.” Cash-strapped antique dealers are aware of the “good deals” to be had in the current market, but many don’t have the cash or the credit to pursue the available opportunities. How, then, can an antique dealer raise the cash to take advantage of current depressed prices? The Baron had the answer in 1815: Shed some blood. Read More
Originally posted 2013-11-14 10:08:00.