Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dr. Id who wrote (16701)	1/28/2000 11:41:00 PM
From: Mike Buckley	Read Replies (1) of 54805

Kay, About averaging down ... I bought Qualcomm at less than $18. Now that the stock has fallen 45% from its high, would I be averaging down if I were to buy now? Of course not. So if it's prudent for me to add to my position now by averaging up, why would it not be prudent for someone who bought at $175 to add to their position by averaging down? The two best answers I know of is because 1) never throw good money after bad and 2) you could be wrong in your assessment of the fundamentals. About point #2, a stock that has risen dramatically since having bought it gives an investor reason to think s/he's been right about the fundamentals. A stock that has fallen since having bought it gives reason to think s/he's been wrong about them. Those are the best reasons I know of not to average down. I'm not sure they are good enough to apply to virtually every situation, but they should at least give an investor reason to think the fundies through a few more times before averaging down. Just my opinion. --Mike Buckley

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next