SI
SI
discoversearch

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.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: HoyaBob who wrote (106036)3/1/1999 10:37:00 PM
From: JBird77777  Read Replies (1) | Respond to of 176387
 
OT: "Averaging" a position

From time to time I hear or read about averaging up or down, and I have never understood why this would make sense.

In making a new investment, it seems to me that one should first determine what one considers to be the optimum portfolio if it were to be started anew (e.g., Security A 10%, Security B 14%, etc., adding to 100%), without considering current holdings. Then, the investor would buy the security that best moves his current portfolio toward conformity with this optimum portfolio. If that security happens to be a current holding that has appreciated or declined, that is fine, but would be purely coincidental.

Just my opinion, of course.

JB