It can be scary buying a stock just before it sells off. Imagine parting ways with your hard-earned money only to be staring at the barrel of a loss of around 20% or more within weeks or months. However, history proves time and again that investing in great companies yields solid long-term rewards. After all, strong business fundamentals drive your returns. In this article, we examine what would have happened if you had bought DBS Group Holdings (SGX: D05) at its previous peak.

The Scenario: Buying at the Worst Possible Time

Consider a scenario where you bought shares of DBS at a previous high of S$58.13 per share on 29 January 2026. By 9 March, you would be sitting on a decline of almost 10% with shares closing at S$52.81 due to the Middle East tensions. Now, if you’d just retained your composure and held your shares all the way, without additional purchases during the downturn, this -10% loss would have reversed into a 21.4%...