The ultimate irony in the financial markets is that they inspire people to do precisely the wrong thing at exactly the wrong time. Residential real estate over the past decade is a great example of this.

Back in 2005 I knew more individuals that were buying up as much residential real estate as possible than I could count on two hands. Today prices are, in many cases, less than half what they were then and the cost of ownership, due to rock bottom interest rates, is just a small fraction of what it was. How have people reacted to this once-in-a-lifetime opportunity? By swearing they will never buy another house as long as they live.

At the same time, Warren Buffett considers this his #1 investment idea (buying homes and renting them out). This is what makes a successful investor: the ability to not just leave the lemming parade but to take advantage of the opportunities it creates.

To some degree this is happening in every security in every asset class every day.

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