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I'm putting my cash to use by aggressively buying this dip. Added to my long-term holdings in the following because I couldn't resist the bargains.

AMZN
NVDA
MSFT

Amazon, in particular, is selling at the lowest Price to Operating Cash Flow ratio I have seen in years.

I was hoping to add to my holdings in MELI and TTD, but they're both actually UP today. So no fire sale on those 2 today.

Also added to some of my newer semiconductor buys:

MU
QCOM
AVGO


I love when Mr. Market puts some of my favorite companies on sale.

About 2 weeks ago, I wrote at the top of this thread:

I'm putting my cash to use by aggressively buying this dip.

I then listed 6 stocks I own that I added to. Here are my results, which you can easily verify for yourself.

	Price on	Price	  Buy on dip
	8/5/2024	today	  Return
----------------------------------------------
AMZN	161.02	        177.06	  10.0%
NVDA	100.45	        124.58	  24.0%
MSFT	395.15	        418.47	   5.9%
MU	 90.42	        107.99	  19.4%
QCOM	157.95	        172.18	   9.0%
AVGO	142.08	        165.72	  16.6%
----------------------------------------------
Average			14.2%

I've held the first 3 stocks above for years, and intend to hold them for many more years. Especially since AMZN by itself contributed to my early retirement in 2020.

But MU, QCOM and AVGO are newer buys based on musselmant's Nasdaq 100 screen that he posted earlier this year. I set a 15% stop loss on those. But the stop losses never triggered. At one point in the dip, MU went 10% below my purchase price, but it's recovered nicely since then. These are all great, quality companies, so I couldn't resist the bargains.

I also mentioned 2 other companies I own that never even went on sale during the dip. MELI, which is up about 15% over the past 2 weeks, and TTD, up 13% in the same period.

Never expected my dip buys to yield an average of 14% in 2 weeks, but I'll take it. Remember that corrections of 10% happen about every 2 years - perfectly normal things that shake out the weak hands. Focus on the long term. Your emotional fortitude counts for way more than your intellect for success in investing.

"Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves". - Peter Lynch

Congrats on the cohones to execute on your conviction that it was a "bogus" dip/correction.

Congrats on the cohones to execute on your conviction that it was a "bogus" dip/correction.

Good job. FWIW, the drop was only 10-14 days after the high. For those remembering the 99-day rule, the chances of a major drop were rather low.

DB2

For those remembering the 99-day rule, the chances of a major drop were rather low.

To be more precise, the chances of a lasting major drop were low.
Dips shortly after highs aren't all that rare, but those specific dips are usually brief. Emphasis on "usually" : )

On dip day, Aug 5, I wrote some (a whole lot of) puts against things I wanted to own but weren't quite cheap enough for me to want to buy. I closed almost all of those today, making ~80% of the maximum possible profit in 10% of the maximum elapsed time. As it turned out I'd have done better buying the stock instead, but I'm still not happy with current valuation levels so I wouldn't have been a buyer at the dip prices. And the puts didn't actually tie up my cash so I kept earning interest on it (and on the put premium too).

Jim

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