Caribou
I've drawn your attention to VISA before, and will do so again.
It ranks #2 on this list and is cumulatively rated a "strong buy."
Kiplinger Magazine's Advice About Every Stock In The DOW Jones 30: https://www.kiplinger.com/
But remember that a recession is brewing, and when it arrives, there will be a steep sell-off which, I think, is the time to buy.
Please read this as it is a crucial -- and factual -- underpinning to knowing when it's best to buy stocks if you want to be a "long-term" investor.
The following article is important for making decisions about "when" to buy -- with the overarching recommendation being to "buy low and sell high," or as Warren Buffett puts it, "buy when others are fearful." (Buffett assumes, of course that you will buy stocks that are good values, NOT just any old stock which is "off its highs."
AI Overview
In the United States, economic recessions last an average of 10 to 11 months, whereas expansions last an average of about 64 months (or 5 to 6 years). Historically tracked by the National Bureau of Economic Research | NBER, business cycles vary significantly in length, meaning individual periods can differ widely from these averages. [1, 2, 3, 4, 5]
So, in order not to miss "the sell-off opportunity to buy low," I think that half a year into a recession is a good "trigger point" for buying manifestly good stocks that have been beaten down by "overall market sentiment."
AI Overview
"Be fearful when others are greedy and greedy when others are fearful" is a famous maxim by investor Warren Buffett. It means you should practice contrarian investing by buying quality assets during market panics and taking profits or exercising caution when everyone else is blindly rushing in.
Why It Works
- Capitalizing on Emotion: Market highs are often driven by the fear of missing out, while market crashes are driven by panic selling. This allows calm, disciplined investors to buy solid companies at a discount.
- Intrinsic Value: When emotions cause people to sell portfolios off blindly, the price of an asset drops sharply below its actual value.
How to Apply the Strategy
- Do Your Research: It is a trigger to look for deals, not an excuse to buy failing companies. Focus on strong balance sheets and the long-term prospects of a business rather than short-term price drops.
- Avoid Emotional Investing: When you act against the herd, you must override deeply ingrained human psychology and avoid panic selling when your portfolio is temporarily down.
- Use Market Triggers: Monitor market fear indicators to gauge when to look for buying opportunities.
Further Exploration
- Discuss with the community how this timeless strategy is applied in the modern market on Reddit's Value Investing Thread.
- View and understand the historical wisdom directly from the Goodreads Buffett Quote Page.
Dman 
No comments:
Post a Comment