August is often considered a silent time on the stock exchange. It was not obvious this month, with both FTSE 100 And we S&P 500 Indicators reaching modern ups of all time. This came to my mind about some of the renowned words of investor billionaire Warren Buffetta.

As Buffett put it: “Be afraid when others are greedy and greedy when others are afraid“

What does Buffett do?

I think it could be. So I think Buffett. To be sincere, we don’t know exactly what “Omaha’s sage” thinks. But his behavior can give us some tips.

Buffetta Berkshire Hathaway he continued to sell a immense part of his largest participation, Appletransforming huge profits of paper into difficult, icy cash.

In the recently reported quarter, the Berkshire cash position reached the highest level of USD 344 billion.

These data points make Buffett look around a part of greed in the current market and a bit of fear behaves.

Placing theory in practice

Sitting on a pile of several thousand pounds of free cash is more likely in the case of a private investor than a free USD 344 billion! But I think you can still get out of Buffett’s aphorism because the markets have reached modern ups.

Sitting on cash, while Soar markets may seem to lose possibilities. But there is another way of looking at it wait Prepared for future opportunities, when the markets will hang, as soon as soon as at some point in the economic cycle.

Buffett simply doesn’t sit with your thumbs when he doesn’t invest. Every day he spends hours reading about companies, searching the market for potential long -term investment ideas.

One share on my observation list

I did the same. We know from the property of Berkshire for companies such as precise parts of Castparts that Buffett sees the commercial charm of a well -operated engineering company with specialist specialist knowledge, reserved products and a long -term customer base.

So I, what is one of the reasons why I like the appearance FTSE 100 engineer Spirax group (LSE: SPX). This is not the name of the household, which is understandable, taking into account its focus on the enterprise. But the company cannot raise dividends for 55 years every year – as Spirax did – without a long time, not doing many things.

The problem for me is the price. Spirax shares sell in 33 times profit per share.

This is too high-priced for my preferences. I am afraid of risk, such as continuous indigent industrial demand in China, eating further spirax profitability.

But if the markets are frosty and the price of SPiRAX shares falls to what I consider to be an attractive level, I will gladly add it to my portfolio.

I am afraid of paying on today’s record markets. Like Buffett, I spend time hunting for brilliant actions that I would like to buy if I could do it at an attractive price.