no sense, page-68

mickyduncan,

With all due respect, that's crap. It all depends on the share and the industry. If you invest in a good company, in an industry which is in a cyclical uptrend, buying on corrections is smart and disciplined.

In the past 4 years, there have only been two, relatively brief periods during which buyers of SBM would currently be underwater:-



And, you know something amazing? SBM's experience is similar in trend terms to buyers of Aussie bullion. You'd only presently be underwater, if you bought in two, brief periods during the past two years.



My point is that it's totally incorrect to imply that averaging down is wrong in all situations. In some situations, it's the smart thing to do. However, you have to be sure that you're investing into a company (and industry) with future upside.