Stocks: Would you rather own more at higher avg price or less at a lower avg price?
My guess would be more at a higher avg price if you think long term the stock will be valued much higher?
My question stems from an opportunity to sell some of my holdings in a corporation that is having a real big day in anticipation of a pull-back where I can buy back extra shares (that might have a name...). In any case, my only concern is that in doing so, my avg cost per share will rise due to the price point that the stock is at now, so is it better to have more shares at a higher avg price or keep the shares I own at a lower avg price?
I'm not cashing out completely for a good long while.
I have bought a bunch of ebay as of late. They own Skype and Skype is about to develop a program that lets iPhone's make calls on WIFI not using any of your monthly cell phone minutes. Basically anyplace you have wifi you can make a call on your cell phone not using minutes. Sitting at your house, someone calls you & if you wifi is on, the call is a Skype call which is free!!!
Also, bought some Netflix and they have been working real well for me.
But then again, these are just my ideas, no one told me to do this!
Warren Buffett once said:
"Nobody ever went broke taking a profit".
Having quoted that, surely your average cost would be lower if you kept your initial holding & topped up at the higher price. Plus you are not "churning" with the associated brokerage costs.
"This is advice of a general nature, & does not take into account your specific financial situation."
Stocks: Would you rather own more at higher avg price or less at a lower avg price?
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