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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Id who wrote (16701)	1/28/2000 2:48:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> But come over more often to the curmudgeon thread, where the skins are thick and the humor is deprecating! Doc, let me remind you of the Curmudgeon Thread's definition of curmudgeonry: "curmudgeon: anyone who hates hypocrisy and pretense and has the temerity to say so; anyone with the habit of pointing out unpleasant facts in an engaging and humorous* manner."* Don't you think Merlin might find the Curmudgeon thread confusing in light of his... errr... personal areas of strength. <lol> uf

To: Dr. Id who wrote (16701)	1/28/2000 11:41:00 PM
From: Mike Buckley	Read Replies (1) \| Respond to 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