In our recent discussion on money-saving tips, we explored an easy approach. Now, we aim to guide you through the process of purchasing stocks with practical examples that could prove beneficial for you in making informed decisions. Over time, we’ve advocated for acquiring assets undervalued during market fear and uncertainty periods.
Seizing Opportunities Amidst Crisis
For instance, during the COVID-19 pandemic, travel-related stocks were severely undervalued, presenting an opportunity to acquire them at a discounted rate. While some companies faced challenges and closures, investing in fundamentally sound businesses with a history of consistent growth over a decade and robust financial health can lead to recovery in a few years. Long-term predictions are often more reliable than short-term ones.
During the COVID-19 crisis, I actively purchased Flight Center stock, starting in 2020, anticipating a rebound as conditions changed and lockdowns eased. The strategy is straightforward: invest in quality assets when their prices are low. Though it’s impossible to pinpoint the exact bottom, strategies like Dollar-Cost Averaging and lump-sum investing offer approaches with their respective pros and cons.
The Benefit of Buying Undervalued Shares
Two significant benefits for buyers of undervalued shares are capital appreciation and higher dividend yields upon share price recovery. To clarify, we’ve included a table showcasing the buying prices of Flight Center in the section below.
Showcasing Flight Center (ASX: FLT)
Flight Center (ASX: FLT) | |||||
Trade Date | Price | Quantity | Total Capital Invested | Fees | Total Capital Invested After Fees |
25/02/2022 | 17.98 | 36 | 647.28 | 0 | 647.28 |
29/08/2022 | 16.57 | 8 | 132.56 | 0 | 132.56 |
23/09/2022 | 15.29 | 2 | 30.58 | 0 | 30.58 |
28/09/2022 | 15.03 | 1 | 15.03 | 0 | 15.03 |
30/09/2022 | 14.55 | 38 | 552.9 | 0 | 552.9 |
16/03/2023 | 17.55 | 50 | 877.5 | 0 | 877.5 |
12/09/23 | 19.75 | 10 | 197.5 | 0 | 197.5 |
20/10/2023 | 18.22 | 2 | 36.44 | 0 | 36.44 |
17/08/2021 | 14.59 | 19 | 277.21 | 5 | 282.21 |
23/09/2022 | 15.43 | 35 | 540.05 | 5 | 545.05 |
07/12/22 | 15.13 | 33 | 499.29 | 5 | 504.29 |
20/10/2023 | 18.54 | 15 | 278.1 | 5 | 283.1 |
12/05/21 | 14.86 | 35 | 520.1 | 10 | 530.1 |
05/05/21 | 16 | 32 | 512 | 10 | 522 |
06/01/22 | 17.78 | 33 | 586.74 | 10 | 596.74 |
22/11/2021 | 18.6 | 90 | 1674 | 19.95 | 1693.95 |
20/08/2021 | 13.96 | 64 | 893.44 | 10 | 903.44 |
07/09/22 | 16.54 | 35 | 578.9 | 10 | 588.9 |
25/08/2022 | 16.57 | 48 | 795.36 | 10 | 805.36 |
Average Price | Total Shares | Total Capital Invested | Total Fees | Grand Total Capital Invested After Fees | |
16.4590102389078 | 586 | 9644.98 | 99.95 | 9744.93 | |
Average Price With Fees | |||||
16.6295733788396 | |||||
Current Market Value (As of 12/04/2023) | |||||
10858.58 |
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“Kindly note that our conversation is solely intended for educational purposes. We do not offer investment advice, and this article should not be construed as trading or investment guidance. It is always advisable to conduct thorough research before making any personal investment decisions. Assess your risk tolerance and finances before engaging in any transactions. If you are uncertain, we recommend consulting with a financial adviser.”