Originally Posted by
Joshuatree
I can see your point of view VI. Always exceptions. But i a mere amateur mortal for one have pretty average analytic (i can be easily fooled trying to interpret a complex balance sheet) and T/A skills and dont have an endless supply of cash BUT someone who i have a lot of respect for as an investor is buying in, averaging down .
Unlike me he is the best analyst i have come across ever, so he researches his companies forensically and is left with top quality companies with generally great balance sheets of which he knows their managements quality and history and valuations accurately, he ignores all brokers research notes and their picks/sells . This eliminates emotion, eliminates FOMO and EGO, 2 of the biggest pitfalls for us ordinary folk.
So when these companies drop into a sizeable discount to HIS valn,he starts adding to his positions totally ignoring whats going on in the world, he is buying a part ownership in a great company(rather then thinking of buying shares in a company). Longer term he is really confident that averaging down now will pay off for him with his own particular needs and criteria.
He is not chasing bargains and big gains but some companies he is averaging down in have dropped heaps look to be going alot more, scary to look at from here. One needs alot of resolve and discipline. He is also expecting cap raises at very low prices in afew he targets to be in on.
Another tactic is to invest 2% of your cash every time the mkt drops 4%!
The beauty here is he doesn't have to worry away about where the bottom is and trying to pick bottoms is a total waste of time imo and involves some hand cleanser sanitation (currently unavailable:)after.And when the mkt confidence does return rebounds can be like a coilled titanium spring, swift and high. You can miss it.
im also assuming i will still be here but unlike many selfish "bullet proof younger people who are still crowding at parties , beaches etc and spreading Covid 19 to their grandparents im distancing etc.
Im being pretty basic and waiting for peak infection signs in Europe and USA, Britain etc and hope to get back in nearer a bottom(either side will do). Lots of false hope imo re vaccines cloud the issue somewhat and complicate decision making.
I do keep asking, what are ones time frames for when the world does start opening up again and manufacture and supply chains flow again, people start earning ?. 3 moths, 6, a year more? Govt's can only bail out for so long.