Emotional Investor
2024-04-27

I'm kinda all in at the mo, so no spare cash to buy much at all sadly. I am single so maybe I could sell my body on the street to raise a few dollars, but being a male in my early 50s, I don't rate my chances.

But if I did have some spare cash, I'd be buying more of the businesses I already invest in that have dipped. Why? Because I understand them. For example $Arbor(ABR)$ has dipped, it's a property investment business, so the higher interest rate environment is impacting its price, but it's maintaining a great dividend yield of over 10%, and has a growing dividend. And interest rates will come down eventually.

Buying the dip is an interesting concept to me because many of my stocks haven't actually dipped. I tend to use a counter cyclical approach, the banking "crisis" last year I brought $Citigroup(C)$ And $Bank of America(BAC)$ Not only was that a counter cyclical play, but also a value play. C is still up just over 50% it's dipped about 4% for me so it's not really a dip. BAC has actually not dipped, it's up. 

Every investor is different we all buy stocks at different times. A very interesting exercise I started about a year ago was setting up kids accounts for my two grandchildren. I look forward mainly to teaching them both about the power of long term investments, but they are both under 5, so I'm going to have to wait a bit. I seeded their accounts with $100 and I just put in $10 a week. Xtra $50 for their birthday and Christmas. IDK maybe they will resent me for not giving them a plastic toy that breaks in 5 minutes, buy 15 years from now, they will have the clear evidence, that grandpa was right. And quite frankly I have the discipline that they don't, and their parents just don't have the spare cash.

But I digress, the point was that stocks that suck in my portfolio, are stars in theirs, and vice verser. A great stock needs to be validated against your assumptions constantly, if it Is still great and going south... yep that's a dip, so buy the bastard. 

But if you have had money in the game for 20 plus years... well the dips don't really cause concern, provided your underlying assumptions are still the same.

May the tiger force be strong in us all

Kia kaha

Do You Have Good Strategy to Buy the Dip?
After I buy the dip, the stock loses -18%. And I buy more dip, the stock dips more -12%. People say you can't time the market. But I've proven that wrong. I buy the dip at the beginning of a bearish trend. Or you can call it a top. --------------- Do you have ability to time the market like me? What’s your good strategy for buying the dip?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Barcode
    2024-05-09
    Barcode
    我听得很清楚!有时候闲钱感觉更像是零钱,对吧?在街上推销自己可能会引起一些人的惊讶,但可能没有足够的资本😆。你的策略是购买更多你已经知道的企业&爱当他们下降是一个经典的举动。我的意思是,谁能抗拒丰厚的股息收益率,尤其是在利率较高的环境下?你为你的孙子建立儿童账户的方法简直是天才!从这么小的时候就教会他们长期投资的力量是一份将会持续给予的礼物。嘿,如果他们因为你没有给他们五分钟内就坏掉的塑料玩具而怨恨你,当他们坐在一个整洁的储蓄账户上时,他们应该感谢你。至于你投资组合中的下跌,这一切都是为了验证这些假设,并在一只伟大的股票下跌时抓住机会。愿老虎的力量在我们所有人心中真正强大!
Leave a comment
1
1