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

To: petal who wrote (66772)	3/3/2021 3:30:45 PM
From: bruwin	Read Replies (1) \| Respond to of 78957

You have your way, and I have my way .... As long as a company is exhibiting the desired Financial Fundamentals, as represented by specifics within its ongoing Financial Statements, I'm prepared to hold the stock. One of the best times to buy more of such a stock is if there's a General Fall-Off in the stock market that depresses the prices of all stocks. We saw that back in 2008, and more recently in early 2020. In other words, the share price of a Quality, Profitable Company falls through no fault of its own business, but more often than not because the "Expert(?)" Fund Managers are offloading thousands of stocks from within their portfolios, and their large stock volumes affect the general market. And what you will generally find is that those Quality Companies will be the first ones to be in demand and, as such, they are the first ones to show an increase in their share prices when the "Panic" subsides. You say, "When the news is bad, buy" ..... But the "news" about what ? The "news" about a company or the "news" about a general market decline ? If the news is bad enough about a Company, then why "buy" it ? If it's bad news, unrelated to the company, then by all means consider "buying" once you see a general reversal in "market sentiment" with buyers starting to move back into stocks. Here's another observation credited to Mr. Buffett -----> "Some investors believe that a Contrarian Investing Strategy is superior to following the crowd. Buffett disagrees, because if the crowd is doing the wrong thing, going 180 degrees in the opposite direction may be no better. This is investing based on Polling rather than Thinking. He states, "Never substitute Popular Wisdom for Independent Thinking." "

To: petal who wrote (66772)	3/4/2021 9:13:08 AM
From: The_Commodore	6 Recommendations Recommended By bruwin E_K_S pak73 petal Spekulatius and 1 more member Read Replies (2) \| Respond to of 78957

But when does contrarianism become insanity? Because if you buy things when things are bad, that could work, but you could also catch falling knives (in a bad way). For contrarianism to work, it's not just adequate to disagree with the majority -- you also have to be right. If something really hurts the fundamental value of a company, you SHOULD take that into consideration. If something really helps the fundamental value of a company, you SHOULD take that into consideration. - Bill