Is it absolutely necessary to buy ROG now?

[alzec]

Hello everyone,

Having recently become interested in the stock market and having read your book, I am in the process of building up a small amount of savings to be invested (currently 3,000 CHF).

I do not intend to live off my income or even increase my purchasing power (for the moment in case ), it's really about discovering a new horizon. If I do better than my savings account at 0.3% I'm happy.

I had the idea of waiting to reach 10,000.- before launching, to take 3 or 4 different positions directly (I know it's not huge). But there you go, Roche, which is on my "wish list", seems to me to be quite favorable for purchase at the moment (according to my limited knowledge and what I've read everywhere) and I'm afraid that this will no longer be the case by the end of the year :S

And before rushing in head first, I prefer to ask the opinion of informed people: despite the principle of diversification, would it be wrong and insignificantly risky to acquire a dozen Roche shares tomorrow, in other words my entire "stock market capital"?
And is this really the right time to buy? I should point out that I don't plan on reselling them afterwards...

Greetings,
Alzheimer's

[Jerome]

Hello Alzec

I think ROG is a bit expensive at the moment, given its dividend potential. Why this particular stock? There's probably a better place to start.

[Jeans]

Hi,

Just the PER is at 24 and the distribution ratio at 73… they are surely likely to cut their dividends very soon…

[Jerome]

I wouldn't necessarily go that far, but it's clearly not a title I'm keeping an eye on at the moment.

[alzec]

Thank you for your answers,

My reasoning was a little hasty. (I'm a beginner )

I first came across this:
"According to a market source, Bryan Garnier has raised its recommendation on Roche from Neutral to Buy but reduced its price target from 302 to 287 Swiss francs. The broker believes that any decline in the stock would represent an attractive investment opportunity."
( http://www.zonebourse.com/ROCHE-HOLDING-LTD-9364975/analyses-broker/ROCHE–Bryan-Garnier-passe-a-lAchat-19774135/ )
and that
"[…]However, Roche is trading at a slight discount compared to its peers[…]" (Boursorama)

I then noticed that most analysts give a price target higher than the current share price, whether they recommend "accumulate" or "buy" (today 16 "buy" recommendations on Boursorama)

And with all this I did not pay attention to indicators, such as the high PER or distribution ratio.

So I will continue on my initial course of action for the moment: learning, observation and patience.

Greeting,
Alzheimer's

[Jerome]

I'm not saying that all analysts are wrong, but don't forget that most didn't see the dotcom and subprime bubbles coming.
What's more, they have conflicts of interest. We're not smarter, just more pragmatic, realistic and unbiased.

[Author]

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