High Yielding Shares Again

You're confusing 'averaging down' with 'dollar cost averaging'.

'Dollar cost averaging' is purchasing at regular intervals with regular amounts no matter price movement up or down. This is an accumulation strategy, and the dividends are all reinvested to accumulate as much of the stock/equity/fund over time. Value is not a factor in this strategy as the value is what the market is prepared to buy/sell at each interval triggered.

'Averaging down' is purchasing more of the stock to lower the overall purchase price. Much like continuing to catch a falling knife (which you demonstrate in this thread IV with the likes of NWH, MCS etc).

Confusing the 2 makes your argument above flawed and not easily followed and has nothing to do with 'High Yielding Shares'.


pinkboy
And when a stock has been trending down for a while, what then is the difference between dollar cost averaging and 'averaging down'.

Both positions can refer to either individual stock positions or to broader based market exposure positions.

When the market is going down, by definition, you will be both dollar cost averaging down. When the market goes up by definition you will only dollar cost average.

I really don't understand your second comment about dollar cost averaging being the accumulating strategy.

Your return under this strategy, sure is the accumulated income and the difference between starting market pricing and ending market pricing, but the overall return will be generated by:
(a) the movement in the underlying value of the investment
(c) changes in the markets pricing of that underlying value of investment.

Hence value vs market pricing.
 
Yep, IV is a dyed in the wool value investor and is talking at cross purposes.
yes 100% dyed in the wool value investor.

This created financial freedom for me before I was 40. Generated great returns (with the exception of the this current financial year which has hit me harder than 'market averages')

but like any investor will have good years and bad years.
 
I don't remember seeing any post saying "IV will be taking a front seat".... Apologies if I have missed a post.
all good, another crop come up every 5 years or so.

Used to get a bit riled up, now not really.

Having made good wealth on the stock market was happy to spread it around abit, teach others that there thinking might have been another me somewhere out there, pyscholgically understanding it without knowing it, but just needing someone to provide some of the basics.

But the last big bang on this forum during 2009 and 2010 took it out of me.
That time cost me a lot of mental capital on this forum. And for what? I was right, the rest ran off into the sunset.

Now don't really care.
Its not my money at risk. I don't get a commission. I don't win any popularity contests.

So yeah, happy to sit on the back seat.
 
'Averaging down' is purchasing more of the stock to lower the overall purchase price. Much like continuing to catch a falling knife (which you demonstrate in this thread IV with the likes of NWH, MCS etc).



pinkboy
funny you love to hype on NWH, MCS, both of which have been disasters for me (from an individual stock position loss %).

Yet haven't mentioned others.

I put I few comments out there several years ago about the attractiveness of buying mainland chinese listed shares.

The chinese stockmarket has since gone crazy. My positions there have done very well.
(But following your logic I am no longer interested in adding, I am now slowly offloading, therefore I am not a dollar cost averaging forever on a single position)

Sorry to disappoint you, I run a very diversified VALUE based portfolio, some individual positions do badly (which is why I never worry talking about my loosing positions, helps to learn as well).

But I am not doing as badly as you may think.

Plus my returns, over the last 6 years very much compensate me for this years downturn when I average out the annual return. Or in your words

'dollar cost average'.

I merely dollar cost average into value, but to limit risk, I dollar cost into many positions.

But I cease to 'dollar cost average' once I don't have a margin of safety between the value of the investment and the market pricing of the investment.


So tat tah, I am back to my seat now.
 
IV, the problem boils down to: You think your way is the only way. That's why others responding are pushing back. If your way IS the way, where is all the back up posters with similar results?

Your view is so narrow and ingrained in you, you can't see there are many ways to skin this cat.

pinkboy
 
Thank you The Falcon, Pinkboy

I really appreciate the knowledge shared by The Falcon and Pinkboy in this thread. If i see either one of you responded i will read on. Much to learn from you. Kudos to you both!
Thanks Anne

PS. I would like to hear more from I V on what the novices can do to benefit from share investing.
 
WOW reached it's lowest point in 3 years today, on back of their CEO calling it quits...

What does everyone think will happen with Masters?
 
IV, the problem boils down to: You think your way is the only way. That's why others responding are pushing back. If your way IS the way, where is all the back up posters with similar results?

Your view is so narrow and ingrained in you, you can't see there are many ways to skin this cat.

pinkboy
So by your definition, the correctness or otherwise, of an investment decision, is governed by the popularity of other posters at a particular point in time?????

Since when in the history of mankind, has ones wealth determining decisions, been determined by the views of other people?????

Goodnite Pinkboy.
 
So by your definition, the correctness or otherwise, of an investment decision, is governed by the popularity of other posters at a particular point in time?????

Since when in the history of mankind, has ones wealth determining decisions, been determined by the views of other people?????

Goodnite Pinkboy.
Hey IV, are you coming over to the new forum?
It would be great to see you there, we have some good threads on the subject already: propertychat.com.au
 
Hey IV, are you coming over to the new forum?
It would be great to see you there, we have some good threads on the subject already: propertychat.com.au
Maybe, I don't have the time I had in years past.
So many investment opportunities for me at the moment.
Not just personal, but business related as well.
The business I set up with some old business partners three years ago is now returning 100% ROE, and the new one we set up a year ago is looking at being an absolute gold mine.
Then I have the private wealth consulting work (which I have previously said, I have absolutely no intention of making available to public).

So my hands are pretty full.
Retirement gets boring when you are too young. I made the money, but I don't know what to do with the time left to me. Worked my whole life.
 
Maybe, I don't have the time I had in years past.
So many investment opportunities for me at the moment.
Not just personal, but business related as well.
The business I set up with some old business partners three years ago is now returning 100% ROE, and the new one we set up a year ago is looking at being an absolute gold mine.
Then I have the private wealth consulting work (which I have previously said, I have absolutely no intention of making available to public).

So my hands are pretty full.
Retirement gets boring when you are too young. I made the money, but I don't know what to do with the time left to me. Worked my whole life.

Hi mate, awesome stuff look at you! Great achievements!
It takes a lot to launch and get a business to a successful level - something I know a bit about, so hats off to you.
And the wealth consulting work sounds amazing too.
But as you said, looks like you are pretty busy - is that what you call retirement ? ;)

Don't know what to do with the time you have left? Time is the most precious resource of all. Think about yourself at age 80, reflecting on your life. You will remember your successful business endeavours, no doubt, what else? Perhaps (I wish it to anyone) a successful relationship and family? Think about what you would regret not doing?
For most people it would fall along the lines of: not spending enough time with my family/people I love and care about. That's one thing you can do: if you have a family, spend time with them, nothing is more precious than shared memories (you can't take your $ in the grave with you). Another thing would be not making the most of your health while you still have it. So go and see the world, take some time to travel see extraordinary places. Best if you can combine the 2 and travel with your family. Business and making money is good, but there are other things in life to enjoy and build memories that will make you happy forever.

Another way of thinking about it is: if you were to die tomorrow, what would you regret not doing? There's got to be some things!

Anyway it would be great to see you over there, I for one, have truly enjoyed your posts and your insights.

Cheers
 
Retirement gets boring when you are too young. I made the money, but I don't know what to do with the time left to me. Worked my whole life.
Buy a second-hand poptop Toyota campervan with solar and see Australia
if you are already where you want to be,without being there then your no longer the boss or the worker you are inbetween,welldone..
 
So by your definition, the correctness or otherwise, of an investment decision, is governed by the popularity of other posters at a particular point in time?????

Since when in the history of mankind, has ones wealth determining decisions, been determined by the views of other people?????

Goodnite Pinkboy.
No sorry, perhaps you read the first paragraph without reading the second and acknowledging.

And there you go again, forwarding a condescending tone as if I'm beneath you. I guess you can't help yourself.

pinkboy
 
Top