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QuestionsCategory: Portfolio ManagementPortfolio Management – When to Buy
Wendy Tan asked 1 year ago
Hi Victor, it was shared in the video the 2 scenarios to buy a stock which are : market crash & temporary pessimism. How about the scenario when the current stock price is lower than the intrinsic value as it was also shared in one of the videos under "valuation" that if the company has strong moat with strong pricing power, then its ok to buy at intrinsic value or 10-20% margin of safety?  Presume a 10% capital allocation to the stock, would it be advisable to adopt a purchase strategy in tranches? Eg 3% now (above situation) then 4% when market crashes and last 3% if market were to down further. thank you for your time as always! wendy  
1 Answers
Victor Chng Staff answered 1 year ago
Hi Wendy,   If the company have a strong moat and pricing power, a 10-20% margin of safety is fine.    If I will allocate 10% this is how I will do it:

1. 5% initial stake  2. 3% second tranche  3. 2% last tranche 
Wendy Tan replied 1 year ago

thanks victor for your advice!

Victor Chng Staff replied 1 year ago

Welcome Wendy :)