Premium: Is it wise to pile into 2U shares after the price drop?

I received a note over the weekend from a BizNews tribesman looking for confirmation so he could pile into 2U shares after the price dropped sharply in the wake of last week's quarterly results. As with Netflix, Mr Market was spooked when 2U offered a next quarter forecast below what Wall Street expected.

After reading the report, our community member concluded 2U's shares are cheap enough to mortgage his house and fill his boots en route to making a fortune. After plunging 50% in the past four weeks, the stock is now $2 below its previous all-time low of $11 a share set shortly after its 2014 listing on Nasdaq.

2U is held in both the BizNews portfolios. We're in good company. The online education leader is also co-owned by talented investors Cathie Wood and Ray Dalio. So doubling down is tempting. But Warren Buffett's success came from a consistent strategy of knowing why and what you're investing in, then staying the course despite Mr Market's antics.

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