The key investing thesis behind Warren Buffett’s best advice

What do you make of statements like Warren Buffett’s advice to “be fearful when others are greedy, and greedy when others are fearful”? Or Baron Rothschild’s “the time to buy is when there’s blood in the streets”?

How about former Fed Reserve chief Alan Greenspan’s “irrational exuberance”?

These statements all share a common concept, something that most of us possess in our deep thinking, commonsense brain, but sometimes forget amid the short-term noise. These pearls of wisdom all rest on the assumption that mean reversion will ultimately prevail.

My piece in today’s Fairfax papers: