Which investment principle is perfectly illustrated by the investment in American Express during the 'Salad Oil Scandal'?

Answer

Investing in American Express during the "salad oil scandal" perfectly illustrates Warren Buffett's investment principle: "Be fearful when others are greedy and greedy when others are fearful." This exemplifies the essence of value investing—acting decisively to acquire shares of high-quality companies when they become temporarily undervalued due to market panic over a transient event, while focusing on their long-term intrinsic value.