'Bought more today', 'I added to my holding today', 'Added to my stake today', 'Couldn't resist adding a few more', 'I have the patience to simply wait while collecting my well above term deposit rate in the meantime', 'Buying more today'.Quote:
quote:Originally posted by Phaedrus
The aim is to share ideas and try to learn something from other peoples successes and failures.
For example, here are some of one poster's comments - from these you could learn :-
(1) Not to average down.
(2) Not to buy downtrending stocks.
(3) Not to add to losing positions.
(4) Patience is not always a virtue.
Or, alternatively, you could learn nothing at all!
Wow! You have to admire that guy's detail of disclosure and tenacity. It is nice to know I have a kindrid spirit out there. In a parallel universe these are the sort of utterances, I could have even made myself! So time to support this 'anonymous guy' with some counterfoil comments.
(1) Not to average down.
Being a foundation shareholder, I first bought into RBD at an equivalent price of $2. So if I hadn't averaged across...
(I don't agree with the term 'averaging down' because if you are doing that you have already lost money. You can only buy more shares at 'present day price'. All shares that you have bought in the past are also only readily tradeable at 'present day price'. There is no choice. So investments can only be judged on whether that share is worth investing in 'today' at present day prices. Thus it is only *ever* possible to 'average across' by buying at present day prices.)
....then I would still have an average entry price of $2, not $1.30! Clearly I would be worse off if I hadn't 'averaged across'.
(2) Not to buy downtrending stocks.
If you ignore the first purchase made during a takeover offer, where generally different buy/sell strategies apply, all the other purchases were actually made at established support levels of $1.25 and $1.30. Certainly not in a medium term downtrend! Furthermore subsequent to these purchases, the share price held at these levels for around nine months. Thus you can hardly describe these purchases as being 'made in a downtrend'. Finally the very last purchase shown, at 96c, is below closing market value, despite the share price fall today. Thus you can hardly say that was a bad decision!
(3) Not to add to losing positions.
(4) Patience is not always a virtue.
I didn't hear the final whistle blow! No doubt RBD is going through a difficult period. Let's wait until 'full time' before we judge the final result shall we :-). It is still 'game on' as far as I am concerned.
SNOOPY
discl: hold RBD