When considering the right time to buy a leading stock you have confidence in, timing can be a crucial factor.
It's a common dilemma many investors face – by the time a promising stock is identified, its early significant gains may have already been missed.
The typical mindset often leans towards hesitancy, with thoughts like, "It has already appreciated so much, perhaps it's too late to invest." This mindset can lead to a perpetual cycle of waiting for the "perfect" entry point. While it's true that even strong stocks may experience temporary setbacks, these corrections frequently occur at higher price levels than when the stock first caught your attention. Ultimately, the difference in price isn't substantial compared to buying it promptly.
In my approach, I advocate for purchasing a stock once I have conviction in its potential. Even if the initial price may seem elevated in the short term, the long-term impact on returns tends to be minimal. In the majority of instances, the entry price's effect on overall returns is often insignificant.
Reflecting on my experience, Tesla (TSLA) stands out as a unique case. Despite a five-year period of stagnation from 2014 to 2019 after my initial purchase of $12(spit adjusted) in 2014, other holdings like Netflix (NFLX), Amazon (AMZN), Costco (COST), NVIDIA (NVDA), Broadcom (AVGO), Apple (AAPL), Meta (META), Palantir (PLTR), and Vistra (VST) have all reached new highs within two years of acquisition, even if encountering initial fluctuations.
