Feb 11, 2024
Hi Erik, thanks a lot for the message ๐
We all have different approaches to risk which is fine.
I my view, the risk of continuing buying on the way down is limited because:
- We are selecting "value" stocks with good fundamentals. Unless the fundamentals change, if a stock was good at $100, then it's even better at $90.
- Say the price drops 30%, I'd basically increase the position by 30% more. This is okay considering the cash previously left on the side.
:)