This short transcript excerpt captures Ndubuisi 'Andy' Egwim explaining a value-oriented investment philosophy: buying undervalued, unpopular stocks before others notice, and being cautious when markets are popular and prices are high. He echoes the Buffett idea of being fearful when others are greedy and emphasizes price as a determinant of future returns.
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.
