"I buy when other people are selling"

J. Paul Getty’s statement, “I buy when other people are selling,” reveals a fundamental principle of contrarian investing, the idea that one can achieve success by moving against prevailing market sentiment. Most people tend to follow the crowd, driven by emotion, fear, and the momentum of group decision-making. When the majority panics and rushes to sell their assets, prices often plummet, frequently below what the underlying value justifies. For those who maintain discipline and a long-term perspective, these moments presents rare buying opportunities.

Psychologically, humans are predisposed to follow trends for safety, but in financial markets, herd behavior can exacerbate price swings, producing periods of excessive pessimism or optimism. Getty’s approach leverages this psychological tendency. Instead of participating in panic-driven selloffs, he saw these circumstances as a form of imbalance, times when the real value of assets becomes disconnected from the price set by collective fear. By evaluating the merits of investments independently and buying while others capitulate, he positioned himself to acquire valuable assets at substantial discounts.

Successful application of this philosophy requires patience, strong nerves, and independent judgment. It demands the courage to act decisively when headlines scream doom, contrary to the urge to do what everyone else is doing. Over time, as anxiety recedes and reality sets in, prices often recover, and those who seized opportunity amidst turmoil stand to benefit.

Getty’s wisdom continues to resonate in modern markets, where cycles of boom and bust frequently repeat. Across all eras, the discipline to buy in times of fear and sell in times of euphoria has created fortunes. The core idea is timeless: value is revealed most clearly when others lose sight of it, and those who recognize it amid chaos often emerge as the real winners.