The Motley Fool Discussion Boards
Investment Analysis Clubs / Dividend Growth Investing
|Subject: Re: please critique my simple-minded...||Date: 1/21/2011 1:51 PM|
|Author: Hohum777||Number: 6617 of 9914|
If they are stocks to be bought and held or positions added to over 25-30 years, does it matter?
From a really LT perspective, you are correct.
The questions were posed more in terms of a DCA perspective.
Let's use BRK-B as an example. Currently trading around $80/sh. A single transaction would be
60 shares @ $80/sh = $4800
Suppose one purchased 20 shares @ $80, @ $75, @ $70, or
(20*80 + 20*75 + 20*70) = $4500
I think the OP suggested $8/trade, but let's use $10/trade, or $20 for the additional transactions.
That's $280 additional capital available for investing in one account.
Would the inefficiency occur every
year? Probably not. But it is still 5.8%
|Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|