The market has got everything on special - whatever you do, DON'T BUY! ...unless you want to end up like Warren Buffett - who loves downturns because that's wh

The market has got everything on special - whatever you do, DON'T BUY! ...unless you want to end up like Warren Buffett - who loves downturns because that's when he can stock up on his favourites, at discount prices. He hates booms, because everything is overpriced, and there's nothing to buy. He folded his first partnership because of that. Of course, the advice for the stocks is the same now as always: don't buy unless you understand what you're buying (although, you might buy a little, as an educational experience). If you can't place a rough value on it (so you know if it's overpriced or underpriced) and are confident it has an enduring competitive edge (so it will compound, buy an index instead. (Scott recommends index funds in: 8. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker, and never touch it until retirement.