BUYING TIME

BUYING TIME

When the market hits its low, true value investors feel that harvest time has arrived. “The most beneficial time to be a vluae investor is when the market is falling,” says investment manager Seth Klarman. There are plenty of companies ripe for the picking. In the summer of 1973, when the stock market had plunged 20 percent in value in less than 2 months, Warren Buffett told a friend, “You know, some days I get up and I want to tap dance.”

Unfortunately, this is the time when investors are feeling most beat up by the markets. Fear and negative thinking prevail, and anyone who has faced down a bear knows how paralyzing fear can be. This, at the depths of a bear market, is the time to buy as many stocks as are affordable. “Value bargains aren’t found in strong markets,” writes money manager Charles Brandes. “A good rule is to examine stock markets that have reacted adversely for a year or so.”

Undervalued stocks quite often lie dormant for months – many months – on end. The only way to anticipate and catch the surge is to identify the undervalued situation, then take a position, and wait, Graham said.

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Buying a neglected and therefore undervalued issue for profit generally proves a protracted and patience-trying experience.
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THRIVING IN EVERY MARKET
Value Investing Made Easy (Janet Lowe):

1. THRIVING IN EVERY MARKET
2. MR. MARKET
3. SUITABLE SECURITIES AT SUITABLE PRICES
4. PAYING RESPECT TO THE MARKET
5. TIMING VERSUS PRICING
6. BELIEVING A BULL MARKET
7. THE PAUSE AT THE TOP OF THE ROLLER COASTER
8. MAKING FRIENDS WITH A BEAR
9. BARGAINS AT THE BOTTOM
10. SIGNS AT THE BOTTOM
11. BUYING TIME
12. IF YOU ABSOLUTELY MUST PLAY THE HORSES