Why Market Crashes Can Create The Best Buying Opportunities

During their recent episode of the Value Options Letter and Acquirers Podcast, Travis and Tobias discussed Why Market Crashes Can Create The Best Buying Opportunities. Here’s an excerpt from the episode:

 I suggest having 15 to 20 different trades and try to get some diversification between industry.

If the market dumps and you end up getting assigned on a lot of names at once, guess what? You’re getting in at huge discounts to our estimates of intrinsic value. Ideally, most people talk about wanting to buy stocks when prices drop and when there’s a lot of volatility and in a bear market, but they don’t have the emotional fortitude to do it. That’s the strategy.

That’s the philosophy. Normally, it’s not best to be emotional. Often what we’ve seen in the past with using these types of strategies is that some of the best returns come in those conditions.

You end up owning stocks at really cheap levels that you didn’t think you’d ever get assigned and then you can ride them higher again. Obviously, you have to be comfortable with that. That really concludes the presentation.