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Warren Buffett would beg to differ with this strategy. If you trade on value, you shouldn't really care what the market is doing. If risk is mispriced, buy mor
by far33d 19y ago
Warren Buffett would beg to differ with this strategy.
If you trade on value, you shouldn't really care what the market is doing. If risk is mispriced, buy more, even if the price is going down and you are losing money in the short term.
- gruseom 19y agoThat presupposes you're right. But there's no way to know this for sure in advance, besides which nobody's right all the time. To do as you advocate guarantees that your losses, when they do come, will be maximal.
- byrneseyeview 19y agoWhereas your trading strategy presupposes that someone else is right, but that they persistently under-react. I find it more intellectually appealing to make my money taking a stand than to make it by saying "Me too, me too!"