Averaging down

[angelzsoul]

Because of this virus "black swan" event, it sets me to thinking of a situation.

let's say u r a value investor and willing to invest globally.
Before the virus event, when US market is trading at high valuation, naturally u will have less weightage on US stocks and perhaps more overweight on UK/HK stocks for example.
This also implies that since not all the global markets will be trading at high valuation at the same time (I dunno if it is always true... can someone experience enlighten me on this part), a value investor will have minimal cash allocation.

When the virus hits us, will u guys have a stop loss on the undervalued stocks (increase more cash so as to buy better potential ones) or just sit through it?

[BlueKelah]

Because of this virus "black swan" event, it sets me to thinking of a situation.

let's say u r a value investor and willing to invest globally.
Before the virus event, when US market is trading at high valuation, naturally u will have less weightage on US stocks and perhaps more overweight on UK/HK stocks for example.
This also implies that since not all the global markets will be trading at high valuation at the same time (I dunno if it is always true... can someone experience enlighten me on this part), a value investor will have minimal cash allocation.

When the virus hits us, will u guys have a stop loss on the undervalued stocks (increase more cash so as to buy better potential ones) or just sit through it?

Depends on the value investor, I am 60% cash 30% stocks at the moment. Normally I dont sell after buying into a potential candidate stock. I may only add position during crash or corrections when there is even more value. 

A stop loss etc will be trading type tools. Lets say you stop loss today and tomorrow stocks rebound and you miss out? thats a trading mentality you have to get out of to be a proper value investor.

As a long term value investor, You should always be buying when market goes down presenting good value and selling as market goes up. Doing otherwise would go against this style of investing.

[LionFlyer]

An analogy came to my mind. 
If one is married or attached, does one jump ship when another more attractive candidate comes along into our life?

You are not supposed to be emotionally involved with your stocks. At most it is a long term relationship. Else pump and dump.

[port]

most of u should by now hv made an intelligent guess that i have average down on diamond offshore. it has been a roller coaster ride.

[Mushy]

If one is married or attached, does one jump ship when another more attractive candidate comes along into our life?

This analogy is crap. A marriage involves commitment that is non existent in holding shares of a listed company.

[karlmarx]

My bad experience in believing the media...

That's how it is in business and investing. It's a dog eat dog world.

Stocks listed on SGX are not held to the same standard as chocolates stacked on fairprice shelves.

An investor needs to assume the worst of any stock they are looking at, and find evidence which says otherwise.