From a stock selection perspective, looking back over the past three decades, the few truly great opportunities all emerged seven years after a company went public (the only exception being Google, which went public in 2004, which we won't consider here. However, even if you waited seven years after Google's IPO, it wouldn't be too late). The reason for waiting seven years is that a company needs to have weathered the rigors of at least one bear market. If it can continue to grow to new heights, it demonstrates a complex, self-reinforcing dynamic at its core, which automatically filters out most risks, freeing up time for exercise and sleep, and ultimately resulting in significantly better returns. For example, Tesla: It's perfectly possible to enter the market in the second half of 2019. While the stock price alone suggests an entry point in 2010, the company was in danger of bankruptcy in the first quarter of 2013, nearly selling itself to Google at a low price. In February 2016 and June 2018, the company's financial situation was also precarious due to various manufacturing hells, and it was on the brink of bankruptcy.