"Ten miedo cuando otros sean avaros y sé avaro cuando otros tengan miedo"
— Warren Buffett
Simplified Meaning:
When people are rushing to buy things because they think they will make lots of money, that is the time to be very careful and maybe not buy. It’s like when everyone is very excited about a new toy, and you think it might break easily, so you decide not to buy it yet. On the other hand, when everyone is scared and trying to sell because they think they will lose money, that might be a good time to buy. Imagine there's a toy that everyone is scared of because one broke, and you know it's usually very strong, so you buy it when the price is lower. This advice helps you make better decisions with your money by not following the crowd’s emotions. It teaches you to think for yourself and look for opportunities when others might be making mistakes because of their feelings.