Part 5/8:
Conversely, for individual stocks, he suggests a more analytical approach. By focusing on companies that represent the best value, investors can strategically lower their cost basis during market downturns. For example, he mentions why he prefers to invest more in a company like Starbucks while its share price is down, contrasting with a position like Williams Sonoma, where the price has appreciated significantly. This selective purchasing aims to maximize returns while mitigating risk.