A lot of phrases and lines are referenced regularly in finance. Even if said by someone great, such quotes come with contexts, and if used in other contexts, they don’t have the same meaning/weight, and sometimes no meaning at all. Along with the fact that, the greats who have said such lines might have changed their views, sometimes even change their whole perspective, and may not use their own such lines again. Barring a few time-tested, centuries old adages and principles, many things are not to be taken at their face value, but the spirit they reflect.
If we apply loading up in the context of value investing, which in itself is hard for many to practice, to load up when something has fallen to the tune of 40% or so, it takes a deeper understanding of the business, great conviction, and the affordability to sit through longer periods if price does not move up as anticipated.
I don’t think loading up is applicable with growth stories, as averaging up sounds logical, as price can go into consolidation after a run-up, as is the case with growth stories, loading up can turn into a mistake.
Trading can be looked at though, as a sign of reversal is visible, and it is possible to make some profit with a target price, as the price is beaten down, but here too, there could be a longer wait.
I come across some stocks that fall steeply, but have never loaded up for lack of conviction, but I do look at stocks that have fallen much as trading opportunities, so take my view with some salt.
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