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?

It depends on your investment objective.

If the business model entice me much enough, then I will consider buying it at a reasonable price and hold for the long-term. This is because I will rather buy at a high price than to miss the wave.

If the business model is average, then I will set an alert to buy it when it is undervalued. In case it doesn't go to the alert price, I won't be upset since the business doesn't excite me too much to take immediate action.

Here is everything about me and what I do best.

For companies that are high in quality and are growing at 20-80% in revenues or earnings, I would be more than happy to pay at fair value.

Strange isn't it?

Link that explains what I'm saying: https://www.valueinvestingworld.com/2013/06/cha...

The main focus is the business, not the price.

There are many cheap undervalued companies that have stayed undervalued for many years, why is that so? This is essentially called a "value trap".

I would rather pay a fair price for an excellent business (one that has VERY strong competitive advantage) than cheap undervalued companies with weak business models.

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?​​​