Short video by Ndubuisi 'Andy' Egwim explaining his investment philosophy: he prefers buying undervalued and unpopular stocks before the market recognizes them, and he warns against buying into popular/booming markets where high prices reduce expected returns. He echoes the Buffett idea to be cautious when others are greedy.
So my investment philosophy is that I want to buy undervalued stocks. I want to buy stocks before people know about it. I want to buy it when people think, oh, things are not going on right here. I want to buy things when it seems like, oh, it's not popular. And whenever it's popular. What happens in the stock market is that when a lot of people are buying a particular stock, the price keeps going up, and the higher you have to pay for something, the less likely you're going to make any returns from it. The higher you have to pay for something, the less easy it is to be profitable or even to make good returns on it. This is a simple way that I approach the stock market. Now, on the flip side, the way to look at it is that when everybody is greedy, that's the time to be fearful. I think Warren Buffett make this quote when everybody's saying, oh, the stock market is booming. Oh, this is an amazing time. I want to buy this, I want to buy that. That's the time to be very careful. That's the time to be slow in making investment.
