If you fast forward to today and take a look at his holdings via the great site hedgemind.com you can clearly see that Paul averages down quite often. Maybe now he believes in the strategy, maybe due to the amount of money he manages he has no choice, or maybe the market has changed from when he first said the quote that averaging down maybe is now a prudent strategy for him, who knows. What I do know is; as traders/investors we must find ourselves based on what we believe in not on what some "guru" says. There's a millions ways to make money in the market, there is no one set way. Read books, get a solid foundation, but then figure out on your own what works and what doesn't for YOU, based on your personality and beliefs.