Meaning: The quote "The way to make money is to buy when blood is running in the streets" is often attributed to John D. Rockefeller, a prominent American businessman and philanthropist who co-founded the Standard Oil Company in the late 19th century. This quote is a powerful and somewhat controversial statement that offers insight into Rockefeller's approach to business and investing.

At first glance, the quote may seem shocking or callous due to its reference to blood in the streets. However, when examined in the context of Rockefeller's life and the economic principles he adhered to, it becomes clear that the quote is not meant to be taken literally. Instead, it reflects Rockefeller's contrarian investment philosophy, which is based on the idea of taking advantage of market downturns and crises to acquire assets at discounted prices.

In essence, Rockefeller's quote suggests that the most opportune time to invest and accumulate wealth is during times of extreme market distress, when fear and panic drive down prices to levels that do not reflect the true value of the assets. By "buying when blood is running in the streets," Rockefeller implies that astute investors should have the courage to act decisively when others are paralyzed by fear and uncertainty. In doing so, they can position themselves to profit handsomely when the market eventually rebounds and the true value of the assets is recognized once again.

Rockefeller's investment philosophy aligns with the concept of "value investing," a strategy popularized by renowned investor Benjamin Graham and his disciple, Warren Buffett. Value investing involves identifying and acquiring assets that are trading at prices significantly below their intrinsic value, based on a thorough analysis of their fundamentals. This approach requires a contrarian mindset and the willingness to go against the prevailing market sentiment, traits that Rockefeller exemplified throughout his career.

The quote also underscores the importance of maintaining a long-term perspective in investing. Rather than being swayed by short-term market fluctuations or succumbing to panic selling during downturns, Rockefeller's philosophy encourages investors to focus on the underlying value of the assets and their potential for future growth. By maintaining a steadfast commitment to sound investment principles and patiently weathering market volatility, investors can position themselves to capitalize on opportunities that arise during challenging times.

Furthermore, the quote reflects Rockefeller's shrewd understanding of market psychology and the dynamics of fear and greed that drive investor behavior. When "blood is running in the streets," it metaphorically represents a period of widespread despair and pessimism, which often leads to indiscriminate selling and the creation of attractive investment opportunities. Rockefeller's advice to "buy when blood is running in the streets" serves as a reminder to investors to remain level-headed and rational amid market turmoil, rather than succumbing to emotional decision-making.

In conclusion, Rockefeller's quote encapsulates his contrarian investment philosophy, emphasizing the importance of seizing opportunities during times of market distress and maintaining a long-term perspective. While the imagery of "blood in the streets" may be jarring, the underlying message speaks to the value of courage, rationality, and foresight in the pursuit of wealth through prudent investing. This timeless advice continues to resonate with investors and serves as a testament to Rockefeller's enduring legacy as a visionary businessman and investor.