Retail investor: I just buy stocks of brands I use. I've got an iPhone, so I own Apple. Simple.


Me: Love it. But did you check if Apple's actually a good PRICE right now?
Retail investor: Price? I just figured a good company is a good buy.
Me: A great company at a terrible price is still a bad investment. Even the best business can be too expensive.
Retail investor: ...so I might be overpaying for good companies?
Me: Probably. I only buy great companies when they're trading for LESS than they're worth. Then I sell 1+ year portfolio secured puts & buy leap calls to magnify ultra compelling setups.
Retail investor: So it's the company AND the price?
Me: Always both. Buying Apple blind at any price is how good companies turn into mediocre returns.
Don't confuse a great company with a great investment...
Even the best business is a bad buy at the wrong price.
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