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The Best Time To Buy A Share

timeThe economy is slowing down. Singapore just released its second quarter GDP growth numbers, showing a slowdown in growth. China is clamping down on corruption and it is hurting its economy. The USA is planning to taper its monetary stimulus program. Could these be signs telling us that it is not a good time to buy shares. Or it is?

Let us try this again. The economy is slowing down. Singapore just released its second quarter GDP growth numbers, showing a slowdown in growth. China is clamping down on corruption and it is hurting its economy. The USA is planning to taper its monetary stimulus program. All this is telling us it is great time to buy shares and enjoy the gains coming from the eventual recovery. So which is the right answer?

The Truth Is

The truth is we should not be constantly worrying about the RIGHT time to invest. As Benjamin Graham discussed in his book “The Intelligent Investor”, investing in a company is buying into a part ownership of a business. There is really no reason for us to invest into a company with a time horizon of only a few days or even a few months.

For example, for investors who have invested in Genting Singapore PLC (SGX: G13) for the past 10 years, he or she would have seen the global financial crisis, the coups in Thailand, the war in the Middle East, the slowdown in China and the air travel fears that affected the tourism in Singapore. He or she would have seen all these and still made more than 500% on the investment.

Foolish Summary

We invest in businesses. We try to make informed decision based on the information we gather. Regardless of what anyone might say, there will be things in the future which we will never be able to predict. Maybe there is no best time to buy a share because the best time to buy a share is anytime.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.