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Hazel

14 May 2021

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How do you decide what price to buy the stock at after evaluating that it’s a good company stock to purchase?

Discussion (1)

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Hi Hazel, valuations are more art than science. More importantly, the business we invest in must be of quality.

I generally compare the company's current price-to-sales or price-to-earnings ratio with history.

I talked about valuation in my article here about tech stocks and how I think about this topic. Hope this helps.

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