UF:
Thanks for your response. I understand and buy into that approach in your example of Aunt Nancy's port, but all her returns as positive.
I don't think I communicated my question clearly enough though, so I'll try a different approach. Sorry.
I don't think we are talking risk here because if one is taking advantage of dips and accumulating anyway, and expecting previous highs to return, then I thought selling off the more costly shares when their respective prices at purchase are regained, with the additional qualifier that the cost spread is great enough to make it worth it, one could improve ones cost/share and stock performance significantly, no risk involved.
I'll use a specific example of my ELON holdings, in which you can observe + and - returns, as a case in point:
10/21 Price Date of purchase Cost Return
33 1/13/00 30 10%
33 1/24/00 45 -27%
33 3/20/00 88 -62.5%
33 10/6/00 26 27%
To keep the analogy simple and use one transaction to illustrate an outcome, assume that I purchased the same number of shares today at $33 that I paid $88 for on 3/20 and the price/share returns to $88. I sell my $88 shares for zero net return at that time (no tax consequences if not in an IRA). In so doing, the value of my ELON holdings would improve by 30% over not having done this. Of course, if the price on 10/21 was $20, the gain would be even better, but you get my point...I hope. :)
Do you do this?
'preciate your input.
rudy |
