Timing,Timing,Timing……


wealthymattersIn most cases, when you buy is more important than what you buy. You can make money on the most marginal company if you buy it at the right time; you can lose money in the bluest of blue chips if you buy it at the wrong time.

The right time is when a stock is selling reasonably near the low end of its trading range or at an historically low price/earnings multiple, or when any other trustworthy guideline indicates a sharp reduction in risk. This low entry level provides a safety net dangerously missing at higher prices.

The wrong time to buy for the long-term investor is when a stock is selling near the high end of its trading range or at an historically high price/earnings multiple. – Dick Davis

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