Buying a stock at 100 on Monday and buying it at 100 on Friday are not the same trade. Most investors can’t see why: Joe Walsh is the Founding Partner of hedge fund Code Partners. 60% annualized, Sortino over 2 in his personal account. Joe Walsh explains: “There’s a concept Lance Breitstein (@TheOneLanceB) popularized called the right side of the V. The expected value of buying a stock at 100 on a certain day and 100 on a different day, they’re not the same.” “Most people hear that and say, if you’re buying it at 100, you’re buying it at 100. No, it’s not. This is a game of missing information. That’s what investing and trading is.” “If you buy while it’s still cratering because it’s really cheap, you don’t have a defined stop. You’re just saying, I like the price. I’m ignoring the trend, I’m ignoring everything else.” “If you’re doing the classic Buffett and Munger of, if the market closes for 10 years I couldn’t care less, that’s fine. But in a hedge fund structure with LP liquidity, it would matter a great deal if the market was shut for 10 years.” “Where I’m really sizing up, I can’t think of a situation in recent history where I’ve done that against the trend. It’s quite reckless from a risk perspective.” “Once you’ve made a bottom and turned, you may be back at 100 having gone through 95 first. Now you can add at 100 with a defined stop at 95.” “You’re still paying the same price, but the trend is with you. You have a defined stop, and you can risk a lot more. You have a tailwind at your back, not a headwind at your face.”