Comments on: Let Volatility Be Your Friend http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/ Contrarian Value Investing At Its Finest Wed, 03 Feb 2010 03:24:06 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: alexg http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/comment-page-1/#comment-229 alexg Tue, 06 May 2008 17:16:19 +0000 http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/#comment-229 thanks Jae I didint realize the error. thanks Jae I didint realize the error.

]]> By: Jae Jun http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/comment-page-1/#comment-228 Jae Jun Tue, 06 May 2008 16:29:38 +0000 http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/#comment-228 Nice post, but it seems like the same content has been appended to the bottom. Nice post, but it seems like the same content has been appended to the bottom.

]]> By: texalope http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/comment-page-1/#comment-216 texalope Fri, 02 May 2008 09:20:53 +0000 http://www.contrarianvalueinvesting.com/2008/05/01/let-volatility-be-your-friend/#comment-216 Averaging down is a business like mind set. If you own a business and have an opportunity to buy inventory at a discount you should be inclined to do it. This gives you the opportunity to make a greater profit when you sell it later(assuming values arent falling). When buying stocks, the same logic applies. If the real economic value of the business isn't falling, the lower stock price is giving you the opportunity to make greater returns. The problem is more emotional because the market is repricing the value of your stock every second of every day. Losing quotational value hurts. I've learned that this is the time to add to my position. The hardest decisions are; 1) trusting my judgement on the real value 2) buying more when the price falls Averaging down is a business like mind set. If you own a business and have an opportunity to buy inventory at a discount you should be inclined to do it.
This gives you the opportunity to make a greater profit when you sell it later(assuming values arent falling).

When buying stocks, the same logic applies. If the real economic value of the business isn’t falling, the lower stock price is giving you the opportunity to make greater returns.
The problem is more emotional because the market is repricing the value of your stock every second of every day. Losing quotational value hurts. I’ve learned that this is the time to add to my position.
The hardest decisions are;
1) trusting my judgement on the real value
2) buying more when the price falls

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