As long as we're on "year end" thoughts…. Here's a "notion" that always kills me when I hear it.
A guy is looking over his portfolio -- he has new money to put to work. He AVOIDS buying the stocks that have gone UP…. Why? Because they've gone up!
Really??
So you're unhappy because they did what you want them to do?????? Explain that to me please…
I had said that I bought 500 shares of Twitter (TWTR) and that I would possibly increase this stake to 1000 total shares. I just bought the other 500 this morning. Why now? BECAUSE THEY'VE DONE WHAT I WANTED THEM TO DO --- THEY'VE GONE UP.
If you go back and look at the long term (3 plus years) charts -- You WANT them higher on the right than the left side! So if you use that logic -- then there's no way you're not going to pay more for the new shares than you did the old. (Averaging DOWN is a different story! Not to be confused with just building a position).
If you owned 100 at $40 a share -- and you pay $45 for the 100 new shares -- you still own shares at below the current market trade price. You now own 200 shares at $42.50 and the stock is trading at $45 What's wrong with that??
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