4 Tips to Buy Stocks Low

You need to train yourself to see declines in the stock market as opportunities, not as calamities.

Shoppers love bargains, except when it comes to stocks. When a stock’s price falls sharply, few investors react with giddiness at the prospect of getting something for less. More likely—especially if they already own the stock—they respond with anxiety or cold fear. Rather than buy the stock, they’re more apt to sell it.

Certainly, there are valid reasons for stocks to lose value, but you need to train yourself to see such declines as opportunities, not as calamities. Warren Buffett, the most successful stock investor of modern times, put it well: “Look at market fluctuations as your friend rather than your enemy.”

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James K. Glassman
Contributing Columnist, Kiplinger's Personal Finance
James K. Glassman is a visiting fellow at the American Enterprise Institute. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.