Josh Brown Buys Meta Platforms And This Stock Down More Than 30% YTD

Ritholtz Wealth Management's Josh Brown said he was waiting to catch somebody else's falling knife earlier this week. In bear markets, he places limit orders to buy stocks at specific levels, even if those levels are well below where the stocks are trading.

That strategy played out Thursday when he grabbed shares of Meta Platforms Inc FB and RH RH near the lows.

"I had extraordinarily ridiculous purchase prices put in a long time ago in these stocks," Brown said on CNBC's "Fast Money Halftime Report."

Brown never expected to get the chance to buy shares in Meta and RH where he did this morning. "It's actually miraculous that I did," he added.

FB: Brown bought Meta around $191 at the open, he said, adding that he looked like a genius a few minutes later when the stock bounced off the lows.

He's unlikely to hold the Meta position as a long-term investment, instead "it's probably more of a trade."

The bounce in Meta's stock may be simply because there aren't any more sellers, Brown explained. 

See Also: Read How Facebook's Metaverse Ambitions Are Shaping Up In Mark Zuckerberg's Words

RH: "RH is a little bit different," he said. "That's probably the beginning of a new longer-term investment position."

Brown doesn't expect rate hikes to materially change the demand for housing, renovations and decor.

"I think RH is probably the highest quality company in the space," he added.

Brown highlighted the company's business model, which drives strong margins, and compared the company's membership approach to Costco Wholesale Corp COST: "In terms of having that membership that keeps the fans of the brand continuing to come back."

FB, RH Price Action: At publication time, Meta was up 0.66% at $199.75 and RH was up 0.76% at $370.12.

Photo: courtesy of Meta.