“What is the most memorable piece of share market advice you’ve heard and why?”

There’s always an “it” toy at Christmas – the toy that trendoids simply have to get their children. It was Tickle Me Elmo one year.

Inevitably, stores run out. Disappointed and desperate parents, who left it to the last minute but simply “have to buy it” for their kid, will pay anything to get one.

The smart thing to do would be to buy five Elmos on December 15. And when the parental panic sets in, sell four of them for inflated prices on December 24.

Here’s a quote from the Oracle of Omaha, Warren Buffett, who has dozens of classic investment truisms. My favourite is this:

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Buffett’s message is about being counter-cyclical, or “buying straw hats in winter”.

When people are panic selling, that’s the time to buy. And when people are panic buying … accept their offer to give you too much money.

It’s not easy to do, particularly on the share market. Who wants to sell and pay tax when you’ve making a monty? And who has the balls to buy when panic sets in and the media is screaming about lost billions?

Stock and property markets are cyclical. Greed and fear play a part in those cycles. Learn to fight instinct and be countercyclical.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.