When to Buy & When to Wait

What this unit covers

Turn valuation and margin of safety into a decision framework for when to buy and when to wait, without pretending to predict the market.

By the end you will be able to

• Explain why buying and waiting should rest on your own estimate of worth, not on price or emotion.
• Recognise that waiting is an active, reasoned decision, not the absence of one.
• Apply your estimate of worth and margin of safety to judge a current buy or wait urge.

How it starts: A Price That Will Not Move

1. You bought a stock three months ago below what you thought it was worth.
2. The price today is almost exactly what you paid for it.
3. Did you make a mistake, or is the price just late?

Words you will meet

Margin of safety

The gap between what you believe something is worth and the lower price you pay for it.

In this module: Valuation Without Fear

1. Why Price Isn't Value
2. Intrinsic Value Simplified
3. Margin of Safety
4. When to Buy & When to Wait (this unit)