Quote:
Originally Posted by Canada 02
^ i think your numbers are a bit off.
For each dollar you spend on beer, you get a 61 cent deposit for the bottle or can?
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Ha, never checked the numbers. I just clipped and pasted it.
Quote:
Originally Posted by Regorium
Another rally atm in the US markets. Is this for real?
So much volatility. I want to average down on some of my investments but I have to admit I am a bit scared.
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How old are you? Are you in your 20s or 30s? Even if you're in your 40s, who cares? Really.
Let me get this straight. Let's say you had bought a stock at $40 because you felt it was a good investment. It suddenly shoots up to $50 and you're buoyant so you buy more. However, imagine it went from $40 to $30. It's dropped 25%. You're despondent and don't buy more and wonder if you should sell. It's the same frigging company. At $30 you get way more shares and way better value than you would at $50 but you won't buy at $30. Is that what you're saying.
Another example: You buy shares of a great company at $10. You bought it because you felt it was good value - maybe you feel it's worth $15. This is called a value and there are lots of them out there - more today than a year ago, BTW. Now it falls to $6 so you buy one more share to add to the one $10 share. Following me so far?
Okay. Your average price is now $8. The share price is now $6, right. If you just had the one $10 share it must go up by 67% just to get to break-even. At an average cost of $8 it only has to go up by 25% to break even. If it goes back to $10, which it should over time if you've assessed the company well, in the first scenario you've only broken even. In the second you've already made a 25% profit.
I'm amazed that young guys like you don't get this. Go away from your computer right now and buy more of whatever you have that's still good despite the market. Ignore volatility. Money invested today will get a better return than money put into the same investment a year ago. This is a buying opportunity. Pick up some cheap investments that will be worth way more in years.
Don't make me come over there and slap you.
I'm not trying to pick on you, bud. You're typical. But think about this explanation. I hope you find value in the advice.