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
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- Barcode·05-09I hear you loud and clear! Sometimes the spare cash feels more like spare change, right? Selling yourself on the street might raise a few eyebrows, but probably not enough capital 😆. Your strategy of buying more of the businesses you already know & love when they dip is a classic move. I mean, who can resist a juicy dividend yield, especially in a higher interest rate environment? And your approach to setting up kids accounts for your grandkids is pure genius! Teaching them the power of long-term investments from such a young age is a gift that will keep on giving. And hey, if they resent you for not giving them plastic toys that break in five minutes, they should thank you later when they're sitting on a tidy nest egg. As for the dips in your portfolio, it's all about validating those assumptions and seizing the opportunity when a great stock takes a dive. May the Tiger force indeed be strong in us all!LikeReport