[Investment Philosophy #1] Never Miss the Chance to Buy Great Stocks at a Discount
The core of my first investment principle is simple: When a fundamentally strong company experiences a sharp decline due to external factors, buy aggressively. In other words, no matter how excellent a company is, never pay an excessive premium. Many investors emphasize the importance of holding high-quality stocks for the long term. I agree. However, the more critical question is when to buy those stocks. While great companies tend to rise over time, simply buying at any price rarely leads to significant outperformance. More importantly, buying at a peak forces you to endure unnecessary losses and wait a long time just to break even. This is why it is crucial to act when good stocks experience a major correction. But why do most people hesitate to buy during such downturns? I believe there are two primary reasons. 1. Lack of Conviction The fear that a stock will continue to fall indefinitely often stems from a lack of confidence in one’s own research. If y...