Personal Development for Smart People Forums - View Single Post - Investments: Professional vs. Self Management

RT Wolf · 01-12-2007, 01:12 PM

From the value investing camp: if a stock I've bought goes down X, I buy more! Why wouldn't I buy something when it's gone on sale--even more?

I would recommend against transaction costs, because that can cause strong incentive-caused biases for the manager to "trade" your account.

Make sure that the funds you own have beaten and/or matched the market for the last little while. If they are lagging, sell them and just buy some index funds.

I would recommend picking up a good book on personal finance (I believe the For Dummies series and hte Complete Idiot's Guide to has copies of it) to help you to understand your options a bit more.

Good luck and HTH!

01-12-2007, 01:12 PM	#3 (permalink)
RT Wolf Family Member Join Date: Nov 2006 Location: Toronto, Canuckland Posts: 1,737	From the value investing camp: if a stock I've bought goes down X, I buy more! Why wouldn't I buy something when it's gone on sale--even more? I would recommend against transaction costs, because that can cause strong incentive-caused biases for the manager to "trade" your account. Make sure that the funds you own have beaten and/or matched the market for the last little while. If they are lagging, sell them and just buy some index funds. I would recommend picking up a good book on personal finance (I believe the For Dummies series and hte Complete Idiot's Guide to has copies of it) to help you to understand your options a bit more. Good luck and HTH!