The following content is not a personal recommendation to buy shares in the companies listed as I am not taking your personal financial situation into account.

When Should You Buy Shares?

So long as you are a genuine investor, someone who is willing to be a shareholder of companies for years, the best time to buy shares is Right Now. Today!

Every day investors sit and procrastinate about being a shareholder in the stock market is another day they don’t get the compounding effect working for them. Even those investors who saw their portfolio valuations decline in 2022 still had the compounding effect working on the dividends being paid. The only decline in their portfolio was on paper, and the important snowball compounding effect was alive and working.

And if they continued to buy shares in quality companies as prices got cheaper, even better!

The most common question I get asked is…

Should I wait or should I invest now?

Thinking you can time the market and sit around and wait for things to be just right is nonsensical, and it just doesn’t work. Huge returns on investment have been missed by investors trying to time the market. And nobody can consistently buy shares at the perfect time. 

Buffett’s Golden Rule: Debunking the Market Timing Myth

Warren Buffett, the greatest investor in the world, has said it for years…

“Trying to time the market is a fool’s game.”

The Real Secret: It’s Not When, But How Long

There is an old phrase that we use… 

“When it comes to investing, it is not about timing the market, it is about time in the market.”

Navigating the Highs and Lows: A Realist’s Guide to Share Prices

What you really don’t want to be doing, is buying shares at highs. And you ideally want to avoid buying shares in the companies you want to own when the price is shooting higher. 

That’s like walking into a store and saying to the shop assistant…

“Point me to all the hot items that are going up in price, those are the ones I want to buy.”

You’d never do that, so don’t do it in the stock market.

Expect that Share Prices May Go Lower After You Buy Before They Ultimately Go Higher

It’s unrealistic to think you can buy shares and prices will automatically rise. 

I tell investors all the time that when you buy shares, expect the price to go down, not up. Get yourself ready to see your portfolio decline in value before it rises. 

I want your expectations to be realistic. Real. Stuck in reality. And not pie in the sky and overly optimistic. If you buy shares in great quality companies, then over time, your portfolio will do just fine, and the overall valuation will rise.

Focus on “What” will Happen Over Time and Not “When” it will Happen 

The “what” will take care of itself. 
Those who stress about the “when,” are the investors who buy at the wrong time and sell at the wrong time.

The Most Sensible Approach is to Simply Get Invested

And I strongly suggest your first few purchases are big, powerful and predictable earnings winners. 

Consider buying some blue-chip anchor companies that you can then build a concentrated portfolio around. These are the foundation companies you will likely own for many years.

Share prices of quality companies rise over time. And once or twice a year during your investing lifetime, you can expect to see the companies you own, and others, discounted. 

If you have some spare cash, buy some more shares so the compounding effect snowballs.

Having some spare cash available is always an advantage when you are an investor.

Crafting Your Investment Strategy: The Four Pillars

There are generally 4 different types of approaches to buying shares.

  • A once off investment with no further contributions.
  • An initial investment and then contributions over time.
  • Targeted investments, which are generally made by experienced investors.
  • Random purchases, which is often how retail investors approach buying shares.

Which one are you?

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