STOP Buying Stocks On Red Days (Here’s Why)

In today's video I explain why it makes no sense to be buying stocks on red days. The strategy of finding great businesses, and then only investing more on days when the stock's price is down, is a very popular one among retail investors but it has significant flaws.

Here, I use 2 clear examples to demonstrate why the strategy of buying stocks on red days is irrational, and more importantly, what is the best strategy for making investment decisions in the stock market.

Interestingly enough, I also have a theory that this weak strategy has been popularised by the misinterpretation of a famous Warren Buffett quote, so stick around to the end for my rationale behind this theory and how I believe the quote is supposed to be interpreted.

Playlist reference (4-Step Stock Analysis):
▶︎    • Плейлист  

Sources:
▶︎    • Warren Buffett: Just Looking At The P...  
▶︎ https://www.berkshirehathaway.com/let...


Enjoyed this video? Here’s another you’ll love:    • Seth Klarman Just Invested $700M In G...  

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.