Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: MontanaFool One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121261  
Subject: Re: Dollar Cost Averaging Rationale Date: 5/31/1997 2:23 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
On Thu, 29 May 97 19:52:35 -0600, ORWAHOO wrote:
<<review message 34>>

Sorry, have no objection to your caution until you feel more confident in your investment education but don't see what you are doing is dollar cost averaging. You make no inclusion of the lost income opportunity involved in not investing available funds fully.

When a casino offers blackjack, their income from good players is like a random walk with an upward drift. The S&P behaves the same way. Poor players of course lose money almost as fast as option and day traders.

Your rational seems to be as if a casino said "I've made an above average amount of money lately, most of you players go home for 6 months." With a combination of a Cash King portfolio and Unemotional Value model (or even Beat the Dow 10 to spread your risk among 20 issues), the probability of long term disaster in a large proportion of these high quality stocks is as close to zero as anyone can reasonably expect.

Remember, however, I'm not a tax or financial advisor
Just Fooling in the Flathead

Tom Kuffel, kuffel@cyberport.net
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement