I agree that REA's valuation is probably a bit rich considering the state of the property market and rising rates although I expect quite a bit has been priced in considering its decline. However I admit that I suffered FOMO and purchased shares on Thursday at around $111.
The only reason being as a long term investor I was happy to have the stock grow into its valuation at around $110 rather than missing the opportunity at those prices as I won't pretend that I know where the markets are going.
Furthermore I have a plan to buy more stock in tranches all the way down to $80 should REA ever get there so I was happy to bite the bullet at $111. However if I was only making a one off purchase I agree that I probably would have waited and hoped for sub $100 before purchasing.
REA Price at posting:
$121.70 Sentiment: Hold Disclosure: Held
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