Skip to main content
No. of Recommendations: 2
Hi, Learnandearn2021.

This is a Public Community discussion board open to non-premium service Fools. Service-specific questions are best addressed to your Service Community discussion boards. Just select your service from the My Services menu, then select Community from the More menu.

That said, Fools don't focus on the market price of the recommended companies but on the conviction in the long term (3-5 years or longer) growth potential of the company. Sometime long into the future, when you look back on this investment, are you going to remember what was the purchase price? Or will you be thinking of how well your company has performed over the long window of time you gave it to realize its potential?

The question is whether you have conviction that the company has growth left in it. If so, then you implicitly believe the company can grow its earnings and subsequently its market price from this point forward. If you have high conviction, then you believe it can grow significantly over time. And when you frame the question of whether to invest in that context, the question of whether or not to invest at the current market price is simple.

When you are concerned about whether this is a good or bad price point, you are letting market timing fears get in the way of smart, reasoned decisions to invest in companies.

Fuskie
Who notes the problem with waiting for the price to go down is that you may be looking at a 52-week low today...

-----
Premium Home Fool: Ask me a Foolish Question, I'll give you a Foolish Response!
Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), Mimecast (MIME), Virgin Galactic (SPCE), Axon Technologies (AXON), 51Jobs (JOBS)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disassociation: The views and statements of this post are Fuskie's and are not intended to represent those of The Motley Fool or any other sane body
Disclosure: May own shares of some, many or all of the companies mentioned in this post (tinyurl.com/FuskieDisclosure)
Fool Code of Conduct: https://www.fool.com/legal/the-motley-fools-rules.aspx#Condu...
Invitation: You are invited to interactively watch Motley Fool Live online television: https://livechat.fool.com
Call to Action: If you like this or any other post, Rec it. Better yet, reply to it. Even better, start your own thread. This is YOUR TMF Community!
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.