Be greedy when others are fearful
Be ready on the sidelines with your cash position đź’µ, ultra long-term investers📉.Â
No one can ever truly time the market, but if you catch a falling knife, don't look at your purchase in the short term.Â
After a year or two, you will thank yourself for the Black Friday discounted shopping. Not for the faint-hearted, but your patience and temperament would be rewarded with time.Â
Absolutely nothing has changed with the economy in the past month to shrink valuations by 10 percent.Â
The title above is a reverse corollary to what Warren Buffet said. See below.Â
The value of a stock is relative to the number of earnings it will generate over the life of its business. This value is determined by discounting all future cash flows back to a present value. This is also known as an “intrinsic value.”
The return that arises as a stock gravitates back to its intrinsic value over time will erode if you pay too high a price.