Wesfarmers Ltd (ASX: WES) is a great Australian business, but if you were going to buy shares in the company…
Source: Google Finance
…Monday was the time.
After global sharemarkets plummeted on the back of poor economic data out of China earlier this week, some of the S&P/ASX 200's (Index: ^AXJO) (ASX: XJO) best stocks had millions of dollars unjustifiably wiped off their market values.
However, savvy investors, who took to the ASX when others feared the outlook, are now patting themselves on the back.
Indeed, shares of Wesfarmers – the owner of Coles, Bunnings, Kmart and more – have since rallied more than 6% higher.
But at over $41 per share, this writer believes the window of opportunity for prudent investors to buy Wesfarmers shares has passed by.
As its number-one rival, Woolworths Limited (ASX: WOW), revealed earlier today, the supermarket space is becoming more competitive and profit margins will likely be sacrificed to maintain market share.
And while its businesses are arguably better quality than those of Woolworths, Wesfarmers share are far more richly priced.
Therefore, I think investors will be best served by waiting for a superior buying opportunity.
