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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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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    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.
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    Chris

    Chris

    Level 6. Master

    Answered 2w ago

    Many people might say just buy, but really it depends on what you see for the company. Valuations must be looked at with consideration for future growth. How much of the future growth is already priced in? How much more can the company grow? What will cause it to continue growing? What will cause it to NOT grow at the rate you're expecting?

    Some 'easier' valuation methods are to comapre using P/S or P/E ratio (less recommended for high growth companies) to historical P/S or P/E ratio for the company as well as to its competitors.

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    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

    Level 10. Unicorn

    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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    Thank You!
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