I feel like I've written it a hundred times over the past few years.
It tends to come up when I'm talking about China. Because China – today – is the most perfect example of this I've ever seen.
So while I feel like a broken record, I'll repeat myself again today...
You make the most money investing in situations where perception doesn't match reality.
I love this because it's a simple, yet powerful idea. If everyone believes something, but they're dead wrong, that's an opportunity. That's where you can make a lot of money.
In 2009, everyone thought stocks were toast. They'd seen the crisis unfold and lost their shirts. It led to a generation of investors giving up on the market.
The perception was that you couldn't make money in stocks. But the reality was the opposite... It was the best buying opportunity in decades.
Today, we have a similar opportunity in China.