Paul,
thanx for your sharing of the GM comments from the GGlistserve.
if you make a monthly contribution
to a portfolio, keep it out of the equity market for the foreseeable future. My thought here is that we are laying the table for a very prolonged gorilla game and you want to have as much dry powder for that game as you can. I do not believe the market will bounce back, so I think you can miss the bottom by several quarters and not miss out on
much of the appreciation.....
Geoff Moore and co-authors did a great job of presenting a method for the layman to analyze a technology company and its niche, thru the Gorilla Game. As UF pointed out earlier, GM's contribution included a writing style that made the difficult material more comprehensible.
Frankly, I don't think GM knows jack-didley about "the market".
While storing "dry powder" certainly makes sense, and what I have simply referred to as "cash" when running past Portfolio Surveys on this thread, I would disagree with his notion of NOT making monthly contributions. That runs against the rationale behind the benefits of "dollar cost averaging", in which one inherently purchases more shares at a lower cost.
From personal experience, all of my equities are not my GG portfolio, but include my non-taxable 401K, Sep-IRA, 403b plans which make monthly contributions. I'm delighted to be making monthly contributions throughout this unfortunate decline in the market over the past 18 months, and over whatever period it will take to recover.
Apollo |
