…entering into a stock…
…many, many times.
When would you do that?
When your research is solid, …
… when you’re amply liquid, …
… and of course when the stock keeps giving you margin of safety to enter for a longish period of time.
There’s no excuse for not doing solid research.
It’s a given.
Research – solid – period.
How do you render yourself amply liquid?
You do this for example by following a small entry quantum strategy.
Let’s have a look at one advantage that springs up in particular.
You become an expert in the stock you are entering into again and again.
You know its nuances over time.
You start getting a hang of its overpricing, underpricing, par value, good results, bad results, and what have you.
You’re in it till you’re convinced about it, sure.
While you’re in it, you’ve developed an expertise on it.
You’ll take that, right?
What exactly have you done?
You’ve made time work in your favour.
First up, staying invested in a fundamentally sound stock over a long period of time should give you a good return.
Then, repeated interaction over the passage of time gives you expertise.