# When to Buy

Buy stocks when they meet three criteria: Quality Rating of 65+, PAR in the Sweet Spot (MIPAR+5% to +10%), and the purchase improves portfolio diversificatio...

Canonical: https://www.manifestinvesting.com/guide/making-decisions/when-to-buy

# When to Buy

Buy stocks that meet quality, return, and diversification criteria simultaneously.

## Key Points

- \*\*Quality First\*\*: Only buy stocks with Quality Rating 65+
- \*\*Sweet Spot Target\*\*: Look for PAR between MIPAR+5% and MIPAR+10%
- \*\*Portfolio Improvement\*\*: Ensure the purchase enhances diversification
- \*\*All Three Required\*\*: Never compromise; wait for stocks that meet every criterion

## The Basics

![Buying Decision Framework](/images/guide/decisions/buying-framework.png)

Successful buying requires discipline. Many investors buy on emotion, tips, or headlines. The Manifest Method uses three objective filters that every purchase must pass.

The quality threshold eliminates weak companies before you analyze returns. A Quality Rating below 65 indicates fundamental problems that make reliable projections difficult. Even if a poor-quality stock appears cheap, its unpredictable earnings make PAR calculations unreliable.

The Sweet Spot ensures you're not overpaying. When PAR falls below MIPAR+5%, you're accepting market-level returns or worse. When PAR exceeds MIPAR+10%, the projections may be too optimistic. The Sweet Spot represents the ideal balance of safety and return potential.

## Buying Checklist

| Criterion | Requirement | Why It Matters |
|-----------|-------------|----------------|
| Quality Rating | 65+ (Good to Excellent) | Ensures financial stability and predictable earnings |
| PAR Position | MIPAR+5% to MIPAR+10% | Targets superior returns without excessive optimism |
| Diversification | Improves portfolio balance | Reduces concentration risk |

## On the Platform

The Stock Dashboard shows Quality Ratings with color coding: blue (80+), green (65-79), yellow (35-64), and red (\<35). Only consider green and blue stocks.

PAR appears next to current MIPAR on every stock page. Calculate the difference to verify Sweet Spot placement. Your Portfolio Dashboard shows sector and stock concentration to guide diversification decisions.

\*\*Example Decision Process:\*\*
1. Stock A: Quality 72, PAR 12%, MIPAR 8% → PAR is MIPAR+4% (below Sweet Spot)
2. Stock B: Quality 78, PAR 15%, MIPAR 8% → PAR is MIPAR+7% (in Sweet Spot)
3. Check portfolio: Already 25% technology → Stock B adds tech concentration
4. \*\*Decision\*\*: Wait for better diversification opportunity or different stock

## Common Buying Mistakes

- \*\*Compromising on quality\*\*: "This 55-rated stock looks cheap" → Cheap often means troubled
- \*\*Chasing high PARs\*\*: "This 20% PAR is amazing" → Probably unrealistic projections
- \*\*Ignoring diversification\*\*: "I love this sector" → Concentration creates unnecessary risk
- \*\*Rushing decisions\*\*: "I need to invest this money now" → Cash is better than poor investments

## Learn More

- [Quality Rating Explained](/guide/core-concepts/quality-rating)
- [Understanding PAR and MIPAR](/guide/core-concepts/par)
- [Portfolio Diversification](/guide/making-decisions/portfolio-design)
- [Stock Selection Workflow](/guide/using-the-platform/stock-search)