Aug 16, 2026 4 min read

Newsletter special: when to buy a stock?

In this week's newsletter, I'd like to spend a little more time on a topic I've received some questions about recently: when to buy a stock?

The Singularity case

Imagine a situation where you're eyeing a certain business you'd really like to own in your portfolio. Let's call this stock "Singularity," ticker "SNGL." A fantastic tech business with high growth and a lot of potential.

But after doing some research, you conclude: "Hmm, SNGL ticks all the boxes, but it's really expensive." So you put it on your watchlist to track and hopefully add it to your portfolio someday.

A few months later, the market corrects and SNGL drops 30%. Sentiment is terrible, and the narrative flips from "SNGL is a fantastic tech business" to "SNGL is overpriced" and "SNGL will get disrupted."

But fundamentally, nothing has changed.

The funny thing about the stock market is that the narrative follows price. That's why it's incredibly important to do your own research, which allows you to go against the crowd and buy SNGL when the market dismisses it even though the business is doing great. That's where the best opportunities arise.

And you don't have to time your first buy perfectly. What I personally like to do is buy in tranches when I believe the price is fair, and really double down as it continues to drop.

I learned this the hard way, by missing great opportunities because I was holding out for a better price. As Warren Buffett said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

The takeaway:

Do your own research and build a watchlist
Form a view of what you believe is a fair price
Be patient (a genuinely underestimated skill!)
Buy when you believe the stock is reasonably valued
Don't wait for the perfect entry if you like the business, because it might never come
Treat market drawdowns as opportunities to finally buy your favorite businesses at a discount

You might wonder how to determine the "fair value" of a business. That isn't a topic for this newsletter, but I'm thinking about creating a more in-depth piece, or maybe even a downloadable eBook, to help you with exactly that. More on that later!

Next week's earnings

After many weeks of packed earnings, we're heading into a short break, at least in terms of the businesses I cover. I'm glad, because I'm a little behind schedule on my earnings coverage with so much going on at the same time.

Business battles

I haven't published many new visuals this week, but here are two of the most recently published business battles!

New publications

Up next

Tomorrow I'll publish my Nebius (NBIS) earnings coverage, followed by Ouster (OUST) and DLocal (DLO). I won't send these as email notifications because I don't want to spam your inbox, but you can find them on my website once they're out. And I'll of course link them in next week's newsletter.

A brand new eBook!

Over the years, I've been able to find and hold many multibaggers, such as Nebius (+805%), Cloudflare (+581%) and Axon (+504%). By now, it's fair to say I've become good at finding these types of businesses.

In this eBook, I break down the entire framework I use to find multibaggers, so you can too. It will be available to subscribers first and will become generally available later on, free of charge. Here are some of the first concept pages.