When it comes to investing, there’s no shortage of adages. Some are practical: You could easily compile a coffee table book based on Buffettisms alone. On the other hand, others should be taken with a grain of salt.
For example, after GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) posted otherworldly gains in 2021, many “buy the dip” adherents invested every cent they had into the meme stocks’ corrections. Bagholders in those camps are now down 67% and 99%, respectively, from GME’s and AMC’s all-time high (ATH).
