Everybody Talks About Buying the Dip. Here's What It Takes to Do It
Most investors have heard of the idea of buying the dip, which is buying shares of a company you like when they're at a lower price than before, with the goal of getting a discount. In practice, dips are difficult times to invest, especially for those who are risk-averse.
But, with a little discipline, it's possible for most of us to get better at recognizing and acting on opportunities to buy quality assets at cheaper-than-usual prices. Let's use Costco Wholesale (NASDAQ: COST) as an example case to explore what you might be thinking during dips, and what to do to turn these periods of uncertainty into times of opportunity.
Here's how Costco's stock performed compared to the S 500 ETF Trust over the last three years.
Source Fool.com
