Buy Low, Buy High

Discussion in 'Share Investing Strategies, Theories & Education' started by Redwing, 20th Jan, 2019.

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  1. Redwing

    Redwing Well-Known Member

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    Buy Low, Buy High

    The last twenty years haven’t been great for U.S. investors. Specifically, it hasn’t been great for lump sum investors. If you invested $10,000 in the S&P 500 in 1999, you could have $29,800 today if you were able to hold on.

    But how many people threw $10,000 into the S&P 500 and never invested again? Not many I’d wager. The majority of ordinary investors contribute to their 401(k) regularly, like clockwork. For these people, the last twenty years weren’t so terrible.

    Dollar cost averaging systematically enables investors to buy (more) low and buy (less) high. Before moving on, dollar cost averaging is a deep rabbit hole. This post, for the reader’s sake, and my own, focuses only on the big picture.

    Cont....
     
    Redwing, 20th Jan, 2019
    #1
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