If you’re looking to buy-and-hold, here’s a way to do it.
Just wait for the stock you like to be deeply on sale.
(Perhaps you’ve heard that before from someone in Omaha.)
But it can be a pain to look through financial records.
Which ones actually matter? (It depends).
Which ones aren’t made up? (We’ll never know.)
Because it’s too much work to find out, experts just gave up and told us we can’t time the market.
Not so fast.
Let’s say you like organic food. It’s the wave of the future—or at least it’s a wave that will be supported into the future by a loyal group of healthy people.
In that case, you might like Sprouts Farmers Market (SFM). It’s a place to go to get good, healthy food.
And back in 2020, it fell like everything else.
Here’s the chart:
In March 2020, it was down around $14. But more importantly, it was down below the lower Band of the 800 period Bollinger Band™.
That definitely qualifies as “on sale”.
So, how did we do if we bought our favorite company when it was below “fair value” and below the lower Band?
SFM is now trading at $82.71.
That’s a compounded annual growth rate of about 55% per year.
Buying a good company at a great price apparently still works.
Happy trading,
— Scott Welsh
