Monday, 1 February 2021

How to Average Up


Averaging Up- My Weakness

One of my investing 'weaknesses' was a reluctance to buy more if the price is more than my average price, so during the last GFC, I didn't continue buying as as the STI rose toward 3,000

 This time, I'm looking at making money and not just keeping my average price down. So when 3,000 looked likely, I started buying more in the 2.80-2.85 region even though it caused my average buying price to go up... because as long as less than $3, its still a profit!

 Of course, now that its more than $3, I've stopped buying. In 2020, I picked up 27.3k of ES3. Could have bought more, but decided to deploy to foreign ETFs instead.

 if you buy $100k at $2.89, its still better than the guy who only buy 3,000 shares at $2.70. since he was using CPF, he should have gone all in!


STI has dropped below 3,000 again. I decided to start topping up my holdings of Sembcorp and Comfort Delgro last year and the market promptly responded by going down. In a sense, thats better for me as I still prefer to average down, even while I am learning how to average up... Now that Sembcorp is more of a utilities company without the Sembmarine overhang, I am actually more confident about adding to my holdings. As for Comfort Delgro, I still believe that 'disruption' by Grab is overstated. 


Last Friday, FTSE100 went below 6500. I believe that FTSE 6500 is a 'buy' but I helped a family member transfer money to SRS to buy Lionglobal AllSeasons fund instead. Today FTSE is up nearly 1% but still below 6,500 so I will be adding at this level

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