"Only losers average losers" is a popular trading idiom but I don't think it applies well to long term investing. A lot of my best long term positions were built by averaging through months (or longer) of pain, then ultimately being proven right It's very difficult to time an exact bottom, but it's much easier to see when a company is trading at a distressed price. Since you can't guess the bottom, averaging into pain is the best way to get positioned in these cases My favorite example of this is $PLTR • Entered in late 2021 • kept averaging for 2.5 *years* through pain • ignored everyone who promised me "it's just a no-moat consulting company" • ignored everyone who said its grossly overvalued from $40 onward • now one of my best performers ever (near 10x on the average) If only lose
View on X ↗