Funny video. Looks like China.
I think you are quite right about the daily lows list bing a great place to start. Not sure if using the all-time high is such a good metric for measuring how far down something has gone though, because things at their peak are often meaninglessly overvalued, and also they often take ages to reach the old highs--but granted that stocks that are knocked down often have a nice bounce--the theory behind C at the moment.
But it depends on how much time, energy, focus and guts a person has too. Value investing is hard, and takes a lot of work.
The long-term buy and hold idea is of course to find a superior company, like a boring tobacco co for instance, that will probably do a few % better than the average, on average over time, so you get more benefit the longer you hold it. (In reality this works best for very young people who are going to live to be 100 and who make the right pick! ) And you minimize taxes and transaction costs too. But in my opinion buying and holding is just easier than some things, because you only need to make one decision. It is not that it is so great, just that it is much less worse than a lot of other things..I often get distracted, or get some hairbrained idea, and not doing anything at all is protection against screwing up. |
