Yes Nick, being heavily invested in dividend paying stocks I find that I really want to have stocks lower in price than my cost basis. Reason- Reducing cost basis, increasing dividend returns each and every quarter.
Counter to what I consider speculative cost averaging, once I'm receiving reinvested dividends into shares that cost me more than my cost basis, the dividends go to cash instead. Not to purchase stock at ever increasing prices. Great in any market. More money to reinvest with discretion, less exposure to market fluctuations.
Okay, so WMT for example which was purchased at 65.30 and now at 109 is an exception to this rule, and certainly MA which has had a stellar return costing me 15.08 per share is also an exception. As well as NFBK with a cost basis of 1.01 per share is an exception considering.
I still believe in reducing my exposure to winners though, taking my initial investment money off the table and keep my cost and exposure to those shares at zero. My outlook is better to play with their money than my own.
Patience when a stock like T falters and I have to make tough decisions adding at 29 and 30 to bring my cost basis in line with what I perceive is fair value. Patience when at best I'm 7% above in one portfolio and 6.8% below in another with T. That will inevitably repair itself and at that point those great dividends will be mine to do with as I please.
Patience, Nick, when I cost average an ADR like NIO to no avail, just waiting for the unjustified tRUMP inspired tariffs on the American people to relent and for short sellers to lose out in a big way.
Patience, Nick when I say to myself "Don't you dare chase that stock, let it come to you"
Patience, Nick.
AI
