Ombretta De Marco @Ombrettademarco: "📈 HOW TO KNOW WHEN..."

Italy

📈 HOW TO KNOW WHEN IT’S THE RIGHT TIME TO BUY A STOCK 🤔 “I DON’T KNOW WHEN TO BUY.” It’s probably one of the most common questions every investor has asked themselves at some point. You’ve found a company you like. The business is strong. The long-term outlook looks promising. Then it’s time to invest, and the doubts begin. ❓ What if the price falls further? ❓ What if I’m buying at the top? ❓ What if I wait for a correction that never comes? Many investors spend their time searching for the perfect entry point. The problem is that the “perfect” entry point is usually only obvious when looking back at the chart. That’s why I believe the real question isn’t: “When should I buy?” It’s: “Am I making a good investment decision?” Those are two very different questions. 1️⃣ Before you buy, ask yourself why you want to buy. The price should never be the main reason. Every investment should begin with an investment thesis. 💡 Why could this company create more value over the next 10–20 years? 💡 What competitive advantage does it have? 💡 Is the market it operates in likely to continue growing? 💡 What could strengthen my thesis? 💡 And what could invalidate it? If I can’t answer those questions clearly, I’m probably not ready to invest. 2️⃣ A great company isn’t always a great investment. Many investors confuse these two ideas. A company can be exceptional. But if its share price already reflects extremely optimistic expectations, even very strong results may not be enough to justify further upside. On the other hand, a company going through temporary difficulties may become an attractive investment if the market has become excessively pessimistic. That’s why I don’t just ask myself: “Is this a great company?” I also ask: “How much optimism, or pessimism, is already reflected in today’s price?” 3️⃣ If the stock falls, ask yourself what has changed. A price decline, by itself, is not an investment opportunity. The key question is: Why is it falling? 📌 Have the fundamentals changed? 📌 Has the company lost its competitive advantage? 📌 Has management made decisions that weaken my investment thesis? 📌 Or has only market sentiment changed? Prices can move very quickly. A strong business usually changes much more slowly. 4️⃣ There aren’t only two choices. Many investors believe they either have to: ❌ Invest everything. ❌ Or invest nothing. In reality, there’s a third option. ✅ Build the position gradually. If my investment thesis remains strong but uncertainty is still high, I may start with a smaller position and increase it only if future developments continue to support my analysis. This way, I’m not trying to predict the exact bottom. Instead, I let business fundamentals, not emotions, guide my future decisions. 🎯 How I approach this challenge. I don’t try to identify the perfect day to buy. I try to build a process that allows me to make rational decisions, even when the future remains uncertain. Before investing, I always try to answer these questions: ✔️ Do I have a clear investment thesis? ✔️ Does the current price offer an attractive risk/reward profile? ✔️ How much capital am I willing to risk if my analysis turns out to be wrong? ✔️ What would make me increase my position? ✔️ What would make me change my mind? If I can’t answer those questions, I prefer to wait. Because investing isn’t about predicting the future. It’s about making rational decisions based on the information available today. The absolute bottom is almost always obvious only in hindsight. A sound investment process, however, can be built today. And in my view, it’s that process that makes the biggest difference over the long term. This post offers a glimpse into my investment process. Over the coming weeks, I’ll continue sharing the principles and decision-making frameworks that guide every investment I make. Because when you choose an investor, you’re not just choosing today’s portfolio. You’re choosing the process that will shape every decision they make tomorrow. 📖 This content is for informational and educational purposes only and should not be considered investment advice. Investing involves risk, including the possible loss of capital. $NSDQ100 $SPY (State Street SPDR S&P 500 ETF) $MSFT (Microsoft) $AMZN (Amazon.com Inc)

Not investment advice. The author may have financial interests in the mentioned instruments.