I am never successful in picking the top or bottom. I'm not a...

I am never successful in picking the top or bottom. I'm not a trader, and have no clue about technical analysis. As retail investors our advantages (over institutional investors) are the ability to accept short-term underperformance; and lack of pressure or accountability to either an angry boss, or angry clients. So we can dollar cost average into quality stocks and sit on them until the narrative surrounding them changes.

Whenever I try to get too cute and wait extended periods of time for round numbers (getting stupidly fixated on Resmed at exactly $20.0000 for example) I come unstuck. It drops like a brick to $20.05 then it's full steam ahead, without me, to $30. I bought a few more today at $21.80 and have about 35% of my intended allocation remaining for RMD between $18 and $20, if that eventuates. I'm surprised to be getting RMD under $25 so anything less is a bonus in my mind.

I'm not saying anyone *should* buy Resmed but if you are already intending to buy, don't do what I often do: think it's already a buy today, then lock yourself into a lower price that may never come.

I can't post the link here, but I recommend watching yesterday's The C.all on Aus.b.iz. Check out the commentary on FPH by Andrew and Howard -- two of my favourite contributors. Both are keen on Resmed and have the view that the market is overreacting to the drugs replacement thesis. They compare FPH and RMD here: (not a link. You'll have to search for it through Google)