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Author: Trevar Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36488  
Subject: Re: FAQ Assistance Date: 6/12/1999 1:01 PM
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TMFJeff,

Thank you for the most excellent FAQ. It is extremely well done and I think it will be very useful on the DRiP boards. I have just a couple minor comments.

In the list of bulleted items near the beginning, it says:

- buy more shares when prices are lower, and less when they're higher (as a result, you don't fret over the stock market's volatility)

I think it's important to avoid the impression that the buyer has any control over the price at which the shares are bought or sold because we all know that in DRiP and DSP plans we really don't have that control as we would if we just bought outright through a broker. Maybe we could add to this as follows:

- realize the benefits of "dollar cost averaging by making regular Optional Cash Payments (OCPs) or monthly automatic bank debits (ACHs). (As a result, you don't fret over the stock market's volatility.) For even more benefit, adjust the amount of your OCPs to buy more or less when the stock's price is higher or lower.

You might want to add a link to the Moneypaper's INVEST% feature: http://www.moneypaper.com/invest/index.html.

With George's permission, you might want to add a link to George's DRiP spreadsheet for tracking DRiP investments.

In the paragraph that begins While it's important to understand the differences... there the following phrase: you'll decide where to invest based on a company's merits, not on the plan that it offers. I would suggest that this phrase be in boldface because it is so important to folks just getting started with DRiP investing. If an individual has only a little money to invest, it can be very tempting to focus on companies that have low minimum OCPs. It's an unemotional decision to stick to the basic principle of investing in a company, not a plan. I think it takes a while to learn and assimilate the ability to be unemotional about investment choices.

Trevar



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