RE:RE:RE:RE:RE:RE:RE:More Games?
masfortuna wrote: Well not sure if I agree completely. If you could buy a car for $1000 would you be ok paying $1100? The difference between the 2 numbers is about 13%. So you can have 13% more shares if you believe that the sp will drop to that level. Incidentally there is no guarantee this actually increases in value. I am holding and have held since the beginning but I am getting a little tired of listening to all the experts state what a great deal this is and then watch it subsequently drop 10-15% further.
In the long run the price you pay today hardly matters. Let's see what happens if you buy Sangoma at $2.80 versus $3.20 and assuming the share price reaches $20 in 5 years. You can choose any number you wish but I've arbitrarily chosen 5 years.
Your compound annual rate over 5 years assuming you purchased at $2.80 and arrive at $20 is ~
48.17%
Your compound annual rate over 5 years assuming you purchased at $3.20 and arrive at $20 is ~ 44.26% which is just a 4% decline
Watch what happens if I change the number 5 to 10 years instead.
Your compound annual growth rate over 10 years assuming you purchased at $2.80 and arrive at $20 is 21.72%
Your compound annual growth rate over 10 years assuming you purchased at $3.20 and arrive at $20 is 20.11% for a difference of just 1.61%
You can see that over the long run, it hardly matters what price you pay today. Timing the market is overrated and one should just buy good business as long as they have durable competitive advantages you should do alright.