Anatomy of a Great Trade: Buying When There’s “Blood In The Streets” – CRM

by | Jan 19, 2024

Bear Markets are a special time for Deep Value traders.

It’s when they get the most excited.

Buffett and Munger always used to say that their favorite time was when markets were falling and “blood was in the streets.”

That’s a little violent, but we get the picture.

And, as you know, we just had a Bear Market not that long ago. Should we have been excited?

Absolutely.

Here’s the chart of Salesforce (CRM):

 

In late 2022, CRM had come down to its lower Bollinger Band™.

That’s the excitement point.

If we got in then around $128, knowing that “fair value” was way up at $206.47, we would have liked our chances. On paper.

As it turns out, it would have been good in real life, too.

CRM hit $206 about six months later.

Hunting for Deep Value during market pullbacks can pay off.

 

Happy trading,

— Scott Welsh

WRITTEN BY<br>Scott Welsh

WRITTEN BY
Scott Welsh

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