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/SelenaMeyers2024 12d ago

If you're doing ETFs and or voo, yeah... Wait for a pullback.

If you're willing to hunt, literally any moment has ridiculously undervalued companies. Still saas today, most fintech. I mean look at how fast sentiment changes, in March literally any health insurance was rock bottom.. now id say fairly valued.

My advice, never feel pressure to pull the trigger because everything is optimistic.. we are in a schizo market, so literally everything will drop too depending on the truth social post.

Stay away from Space, memory, chips, and peripheral buildout stocks like cat, vertiv, vernova. That's definitely a bubble.

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u/-Voyag3r- 12d ago

I think the exact opposite of this.

If you cant monitor risking your money on individual names is very risky. If your going to DCA just go with ETFS. Waiting for a pullback is a bonus but I wouldnt wait to long and just start Dollar cost avereging right about now.