Stock prices always seem to be on the high side when looking across 52 weeks. Is there ever a good time to buy or should I just buy if I feel that it’s a good stock? - Seedly
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AMA The Fifth Person

Anonymous

Asked on 16 Feb 2019

Stock prices always seem to be on the high side when looking across 52 weeks. Is there ever a good time to buy or should I just buy if I feel that it’s a good stock?

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Victor Chng
Victor Chng, Co-Founder at Fifth Person Pte Ltd
Level 6. Master
Answered on 18 Feb 2019

Hi,

A good company can be a bad investment if you pay at the wrong price. The important thing is to know how to value the company and buy them based on valuation.

Personally, for company with good business, I tend to buy them at fair or 30% discount to intrinsic value (IV) but for fair business I will want to buy them at 50% discount to IV.

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Frankie Rappaport
Frankie Rappaport

06 Feb 2020

I‘m convinced that You and Your 5thP team are very successful in investing. However compared to a market benchmark it is almost impossible longterm for retail investors to beat the market. So maybe one invests a lot of time into calculations etc. when passive ETF approach would be much more care free.
Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 06 Mar 2020

Wanted to share a quote which I feel is quite relevant to your question - "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price" by Warren Buffett.

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MT2020
MT2020
Level 7. Grand Master
Answered on 06 Mar 2020

The stock market will always go up in the long term. So if you are always looking at the current stock price, you will never be able to buy the stocks and you will lose out in potential dividends and capital gains. If you are afraid of recession or market crash, you can always DCA into etfs.

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Answered on 06 Feb 2020

Yes, just buy.

stocks seem on the high side for 10 years. it is kot possible to market time. if in the past you'd waited longer periods in hope of finding a lower buying price you missed a lot of capital gains.

however single stock investing is not the best choice, better consider ETFs. to avoid buying too high just rebuy at regular intervals, so you're averaging the price.

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