BUY WHEN CHEAP NOT HIGH16 Nov 2018 13:39
When the blood is flowing down the gutter, BUY BUY BUY. Get as much as you can of the shares that have dropped a lot. Also buy the Investment trusts that have dropped a lot, remember their NAV is usually well above the share price, making them very cheap and the dividends higher. Investment trusts cover a range of companies world wide and unquoted, thus spreading your risk, unless you can afford to buy 200 different shares so a range of investment trusts that are 33% below their high is a good investment, even if you can buy 200 different shares, buy a wider range of ITs and you do not have to keep checking the share price. We are 90% invested in ITs and adding monthly as much as we can at present. If possible buy over a number of days and weeks to give you an average. As we approach 80 we have seen it all before and people have made money, a lot, when buying at a low price. How often have you looked at the share prices, with company lows showing 50 - 100% down on the current the price and said " wish I had bought them when they were that low". So why did you not buy them when that cheap. It is not easy to buy at the bottom but certainly when they are just off it. This is when you make money. Buy at the top will give you a better chance of losing money short term,, with you having to wait 12 months for them to recover to what you paid. We have seen black this and black that, but they all come back if the company is sound. That is why we like ITs which leaves the work to those who have the time. Small companies show a better return than FTSE 100 companies.
It is your money so buy as you see fit.