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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (19530)	8/11/2004 9:02:50 PM
From: doug5y	Respond to of 78625

Here's Michael Burry's thoughts on the subject, taken from his value stocks web site ( found on the Internet Archive : web.archive.org ) : " 7. Don't be too afraid to be afraid of commitment. Once a stock has been found to be a fundamental value, it often pays to buy a half-position initially if the stock has been falling. Then, if the stock continues to fall significantly you can average down into a full position. At the same time, you have minimized the impact of a single stock-timing decision and likely removed emotion from the equation. If the stock moves up as expected, then you can increase your position -- there should be a sufficient margin of safety to allow this. Be wary, however, of using half-position strategies to substitute for knowledge. The strategy is meant to help mitigate the effects of falling knives, not to allow sub-par stocks into your portfolio."