Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (48157)	2/21/1999 2:50:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

SB, Someone who invested $100 at the Nikkei top of 100 (say) with the Nikkei today at 35 (say) has lost 65%. However, someone who invested $50 at 100 and $50 more at 65 (say, on the way down) has lost 56%. So, just splitting up the investments into 2 blocks is better, now splitting it up on a weekly basis is even better - try the math, you will be surprised to find out how inefficient market timing really is. IOW, witness the power of dollar cost averaging at work! And someone who invested $33.33 at 65 (sometime between 1980 and 1989, say), $33.33 at 100, and $33.33 at 35 has lost even less, some 37%. So, it is even better to invest across market tops and bottoms. I have ignored the time value of money here, including that will alter the calculations somewhat but the basic premise will remain the same. As for death, if I make 2000% on DELL calls (as I did over 12/98-2/98) and die tomorrow, what inference, if any, are you going to draw from that experience? I am not paranoid enough to decide my investment approach based on the possibility that I may die tomorrow. -BGR.