facebookIs it better to buy a stock at the right price, e.g. when it is undervalued, or buy a good stock at a reasonable price? - Seedly

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Anonymous

10 Dec 2019

Stocks

Is it better to buy a stock at the right price, e.g. when it is undervalued, or buy a good stock at a reasonable price?

What are your thoughts?

Discussion (13)

What are your thoughts?

Elijah Lee

Elijah Lee

10 Sep 2019

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

A very debatable question, and there's no right or wrong here. I would instead say that you should buy a good stock at a reasonable price, to get one foot in, but accumulate more if it becomes more undervalued, provided that the stock remains a good stock. Build your positions over time, Rome was not built overnight.

View 1 replies

Hey there,

As most people have answered that it's likely the wonderful company at a fair price. Thought it'd add some colours to this.

Alot of times companies are cheap for a reason. The underlying business economic value gradually eroded with each passing day. this becomes an investment that's a race against time.

Time is the friend of a quality company as the management has time to execute and produce results.
Buying cigar butt style companies is like betting on the reversion to mean, that they will go back to the old days of glory. So the million dollar question seems to be, can they?​​​

Bjorn Ng

Bjorn Ng

05 Dec 2019

Level 13·Business Analyst at 10x Capital

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price...

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