I recently bought some stock. Yes, I know that market valuations are not cheap and that there are relatively more risks involved to invest now. My long term goal is ultimately to increase my war-chest.
Iconic hedge fund manager Seth Klarman says investors are missing huge risks (read here)
However, I do believe that in some situations, these warrant a second look. And perhaps a buy move. One such situation is when the company management made a blunder which indirectly affect the future revenue prospect of the company as a whole.
Yes, the price trend could be down in the short term and you could be catching a falling knife when the trend is down. However, personally to me, as long as the price offers a margin of safety to my intrinsic price calculation and trailing PEG estimates, it doesn’t really matter. And really, I do sucks at timing the ......