I just think of it as trying to get the fattest pitch possible, period. If there's one thing I've learned from Buffett, it's that styles can be tweaked for the better. Lord knows I don't generally invest like him. |
Let me explain something about the "new lows" though. Buffett talks to management. He knows the companies intimately, and he knows the competition intimately before he makes a decision. He is an excellent judge of character in CEO's. When a factor in the company's success turns south, don't you think that he finds out about it through these contacts?
I don't have any of that. I have the 10K. I don't sit on any boards. I can't buy enough shares to influence the board's or the executive decisions. What I do have is the knowledge that when a stock makes new lows, the people that do have that knowledge for some reason have decided not to provide buying support at a place where in the past they have provided solid buying support.
To try to emulate Buffett perfectly without his full complement of skills and advantages (which I do not have, but any of you here might for all I know) seems foolhardy. So I take something else from Buffett - the willingness to improvise new investment parameters as fits my situation.