Motley Fool Money Making Sense of Stock Drops
Feb 19, 2022
Asit Sharma, a Senior Analyst and contributing writer for The Motley Fool, delves into the lessons learned from past stock drops. He discusses the emotional responses investors face during market volatility and the importance of evaluating company leadership. Notable insights include Netflix’s 'Quickster' debacle, the strategic shifts at Microsoft, and how Chipotle navigated its food safety crisis. Plus, Sharma emphasizes the need for disciplined investment strategies and revisiting investment theses amid changing market conditions.
AI Snips
Chapters
Transcript
Episode notes
Ballmer on iPhone
- Steve Ballmer underestimated the iPhone's potential, citing its lack of a keyboard and high price.
- He believed Microsoft's strategy with Windows Mobile devices was superior.
Bottoms in Hindsight
- Identifying market bottoms is difficult as they are only truly visible in hindsight, per Josh Brown in 2020.
- Even after the March 9, 2009 bottom, the market climbed 41% by June 1st, yet most participants remained uncertain.
Avoid Single Event Investing
- Avoid pinning your investment strategy on a single event of buying low and selling high.
- Consider dollar-cost averaging or buying winners on the way up to smooth out the process.