Mo, I see what you mean. I also buy on the dips when I feel Intel is significantly undervalued. I also buy monthly because I believe dollar cost averaging is a smart thing to do. It also fits my budget and lifestyle.
Where I think we differ is that I don't believe you can time the market or an individual stock as you suggest. When you say....
"Wouldn't it have been great to sell back in Oct when we hit 100 and then buy it back 2 months later when it hit 70?"
Sure it would have been great, but everything looks wonderful in hindsight. I have never seen an investor able to time the market like that consistently. Have you? If it were possible to do it, the Forbes richest 100 list would be chock full of them. The last time I looked, I didn't see a one!
It makes much more sense to me, to use the strategy that Ibexx and Paul and so many other long term investors have outlined and described here numerous times. Namely hang on to your core holdings in quality companies and buy leaps when you feel an opportunity is at hand.
I don't know how many people have noticed or kept track here on SI. But I have for well over two years, and I can tell you this... Ibexx and Paul and a few others, have provided a clinic for investors to learn from. I'm still learning, but it's an obvious strategy for long term wealth to me. And I feel fortunate to have learned it here.
If more people would simply pay attention, we would have a thread full of much wealthier investors. Unfortunately some people think they can do what NOONE has ever done successfully long term before. Namely, time the market, and purport to hold the key to the holly grail of investing. They usually end up in bitter fights and lose allot of money.
I've said this before, but anyone who carefully looks over the thousands of companies available in the market to short. And then has the hutzpah to chose Microsoft and Intel, is an absolute glutton for punishment of the worst kind. It doesn't take a rocket scientist to see that.
Not that I'm speaking of you here. :-)
Michael |
