Q: Hello, I like these two stocks and already have a 2% position in them. I'd like to continue building, but I keep reading how they are both currently overvalued. However, they seem to continue climbing in price! My positions are considerably lower than today's prices, so do you think averaging in would be okay or wait for a dip that may never come? Or could you suggest a couple other options for stable but high growth over the next few years? Thank you so much!
5i Research Answer:
We, by far, prefer averaging UP over averaging down. Quality companies deserve a premium, and it is rare for good companies to get 'cheap', really. Much as always depends on the market, but we think the fundamental outlook for each of these is solid, and we would be comfortable buying, assuming an investor has an appropriate timeframe to hold.