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I agree with your approach.

In my 403(b) retirement account at work, the options available to me are limited. Hence, I dollar cost average into the total stock market index fund available. Its a LTB&H vehicle and there is no way I can study each company in the index.

I handle my non-retirement account differently. First, I make sure I have a minimum amount of cash in it at all times for emergencies. Then I select no more than 6 companies that I've examined and monitor quarterly and feel comfortable in holding for at least the next 5 years. My holdings are QCOM, JDSU, BRCM, NTAP, GMST, SNDK.

When I make the initial purchase, I always just put down a partial investment. That's because whenever I buy a stock, IT ALWAYS GOES DOWN (I'm serious ....). After it goes down, I then put in the rest of the investment so I dollar cost average down and feel good about my bad luck in timing things (probably kinda sick thinking but what the heck, it keeps me happy). If/When there is a market correction, I view adding to my positions as a company CEO would view a stock buyback .... it's good news, not bad as long as the rest of the market is tanking too.

I'm not 100 percent sure that I will become wealthy this way, but at least I am 100 percent sure that I can sleep well at nights.

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