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Is it time to be greedy and buy ASX shares?

Tristan Harrison

Is it time to be greedy and buy ASX shares? Some investors seem to think so, the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) is up around 0.5% in early trade.

“Be greedy when others are fearful and be fearful when others are greedy” – Warren Buffett.

The above quote is one of the best (free!) pieces of advice ever given by Warren Buffett.

Share markets are cyclical. Economies are cyclical. There are periods of growth and there are periods of sharp decline. Of course, we feel the drop harder than the joys of the slow-and-steady gains. So, that should mean that the best time to buy is when others are selling and there is panic.

The funny thing about the share market is that every trade has two sides. Today, there are buyers of the shares that others are selling. Should you be one of those buyers?

One of the most commonly quoted phrases is “don’t time the market”. You can’t tell what the index is going to do next week, next month or next year. So, if you’re an index buyer then you should just keep regularly buying.

But, for investors who invest in individual shares we can completely dictate what shares we target at what price. We don’t have to take a price given to us, we can wait for what we’re happy with.

For example, the share price of Costa Group Holdings Ltd (ASX: CGC), one of my favourites, has risen quite a lot over the past month and a half, so it’s less of a good buy than it was before.

However, two of my other favourites like Paragon Care Ltd (ASX: PGC) and Challenger Ltd (ASX: CGF) are now lower than a month and a half ago – offering even greater value.

I think now is a good time to buy ASX shares. It’s always good time to buy ASX shares, you just have to find the right ASX shares that are trading at valuations attractive to you.

5 Companies we like better than Costa Group

When ace stock picker Scott Phillips has a buy recommendation, history suggests it can pay to listen.

Scott recently revealed what he believes are the five best ASX stocks for investors to buy right now… and Costa Group wasn’t one of them! That’s right — he thinks these 5 stocks are even better buys.

See the 5 stocks

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Motley Fool contributor Tristan Harrison owns shares of Challenger Limited, COSTA GRP FPO, and Paragon Care Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and COSTA GRP FPO. The Motley Fool Australia has recommended Paragon Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.