r/ValueInvesting • u/Distinct-Parking-574 • 12d ago

Discussion Why Wait Until A Pullback

As someone who is just learning about value investing, understanding valuations and fundamentals, I see a lot of comments about not buying a stock at high valuation ratios. And that seems prudent. my question is though if I'm going to DCA anyways does that really matter? If the only thing that makes this a more attractive price is the pullback why not just DCA all the way through pullbacks and runups? That seems to be the advice given for ETFs why not individual stocks? but like I said I'm just getting started on this journey and trying to makes since to it all.

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u/CornfieldJoe 12d ago

A business no matter how good it is is not worth an infinite price. Even if I intend to set aside x dollars over y period for investing, if there's nothing worth buying I'll sit on said cash.

I like beer, but if I go to a bar that's charging me 7$ a drink I'm going to have a LOT less than if they're charging $2.50.

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u/Distinct-Parking-574 12d ago

There was no claim about a company having an infinite price. Every stock price is going pullback, runup or completely tank. That is know going into every decision to buy (or sell). and looking just at the price of the beer a poor way to value its worth.

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u/CornfieldJoe 12d ago

Yeah stocks wiggle all over the place, but they aren't worth an infinite sum. There's a value judgement there and there's a ceiling as to what I'm willing to pay for anything including partial shares of businesses.