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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: freeus who wrote (44106)7/4/2001 7:25:46 PM
From: Uncle Frank  Read Replies (2) of 54805
 
>> I was in a Wells Fargo bank yesterday and saw an interesting flyer. It was about investing in stocks month after month... It had this table: $100 a month from Jan 1990 through Feb 2001

We've discussed that approach many times, freeus, and recommended it for our younger members. It's called Dollar Cost Averaging. It gains its potency from compounding rather than timing, but there are several requirements:

1. You have to select a good vehicle in which to invest, one that will continue to grow over time.
2. You have to commit to making the same dollar investment each month for a protracted period.
3. You have to ignore the machinations and moods of Mr. Market and the advice of others, and keep doing #2.

Based on your public record, I think you could do #1, but you'd have a real problem with #2, and no chance at #3.

uf
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