AMA The Fifth Person
Asked on 16 Feb 2019
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.
06 Feb 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.
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.
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.