Ah im not buying like that dollar cost average crap. Like for...

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Rx7driftking

8,143 Posts.

38

18/04/24

20:31

Post #: 73414754
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Originally posted by deco19 ↑

Good statements, however on the following comment: "Is buy smalls multiple time to build up position. Never do one big all in sort of deal."

The research so far indicates lump sum is best way to go, following read (taken from https://equitymates.com/episode/lump-sum-or-dca-the-latest-on-ozempic-a-baby-berkshire):
- Dollar Cost Averaging vs Lump Sum [All You Need to Know] (ofdollarsanddata.com)
- morganstanley.com/articles/dollar-cost-averaging-lump-sum-investing
- Cost averaging: Invest now or temporarily hold your cash? (vanguard.com)
- The dollar-cost averaging myth: why lump sum investing usually wins (morningstar.com.au)

You cannot predict the randomness of the stock market, you can however get a good hold on value, and a slightly lesser hold on what denotes "quality". So, in those terms if you think there is value and quality then what I've done is put both hands in the pockets and bought. When I see value, I buy, I don't know when it will take a breather, or wind back, I have the confidence based on a value and quality perspective that what I buy is good value. If it were to be taken off the market tomorrow, I'd be confident that the value of that portion of ownership is now worth more with an objective valuation separate of the market. And I don't think anyone (save insider trading) can reliably predict short-term at all unless they're controlling a self-fulfilling narrative (zero sum game - popular chartists with a large following, in that case the first one out has sat down on the now fewer number of chairs remaining).

Here I saw value and shifted every free dollar I had into buying more with lump-sum chunks.

I understand reasons about how taking profit makes sense but in the timeframes, I started buying (around late last year between 27-31c range) that this story is stronger than it was yesterday and now it has taken off. Has sentiment outpaced value? Well, look at where the share price has come. Was it overpriced then, or have we been severely undervalued and now the market is returning it to the mean value?

The companies I abstained from realising profit because the story only keeps getting stronger are the best performers and my biggest holdings (and biggest cost prices), one story played out its thesis so far but took years. This is going to be another one of those companies for me, to echo Charlie Munger, "just hold the goddamn stock". This is not a couple month play.

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Ah im not buying like that dollar cost average crap. Like for this one 29 cents 5k today 29.5 cents buy another 5k a few days later then 5k at 31 then buy at 30 so spread the buy over a week rather going hey today is the 18th going to go all in 20k

I want to buy when momentum is building rather then dumping it all in and waiting for that one day of breakout

PEX i got my starter position and it hasnt ran on the back of copper so there u go

Last edited by Rx7driftking: 18/04/24

A1M Price at posting: 41.0¢ Sentiment: Buy Disclosure: Held
3 Upvote

1 Great analysis

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