My title today is based on the following quote that Warren Buffet presented in one of his annual stockholder meetings.

Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.

• Berkshire Hathaway 2004 Chairman’s Letter

In beginning of 2009, I changed my 401(k) contribution percentage to the maximum that it could be for the company that I work at (15% of my salary).  I made my decision based on the quote above, and on the confidence I got from reading about Warren Buffet making his stock purchases in the later portion of 2008.  Most people I talked to were pulling their money out of the stocks and putting them in money market funds or bonds.  This is what you don’t want to do!  After the market has tanked around 40%, I didn’t want to pull my money out and have it sit in cash.  That’s selling low and buying high, very bad!

While the smoke hasn’t totally cleared yet, everything is looking very positive at this current moment in time.  I believe that it helps having assets is different types of investments.  I think Jim Cramer is right on this one “Diversification is the only free lunch”.