閱讀心得:持續買進 Part.3 Reading experience: Just Keep Buying Part.3









The following text was translated by Google translate, and there may be some areas where the sentences are not very smooth, so please forgive any imperfections.

Today I will continue to share the content of the book "Just Keep Buying". Chapter 14 mentions why we shouldn’t buy on dips. This question bothered me before. Although I have moved beyond this question, the explanations in the book make me more confident in my own opinion.

In the chapter, the author uses real numerical calculations to compare the methods of buying on dips and continuous investing. Unless we encounter a situation similar to the stock market crash in 2000 when we first started investing, 70% of the time, buying on dips will be no match for dollar-cost averaging. And this result is based on the premise that there is a way to know the lowest point of the market.

In fact, this also echoes the content of Chapter 13, which is to invest in the market as soon as we have spare money. But the difference is that Chapter 13 mentions a large amount of money, so the suggestions are different. Most of the time, a one-time investment in the S&P500 Index is better than entering the market in batches, but there is also the possibility of higher risks. Sacrifice part of the interest and hold part of the bond is to reduce the risk of investing at a high point in the market.

Although I don't have a lot of spare money, these contents are not applicable to me at the moment. But it is true that when my relatives and friends ask me investment-related questions, they often ask me how to invest a large amount of spare money. In the past, I suggested that they plan to invest in batches within a certain period of time. Now that I think about it, I may need to think about the pros and cons of the two methods. Since I have just absorbed the concepts in the book, I haven’t been able to verify them and need think about them more deeply.

But on the issue of buying on dips, I have indeed been thinking about this issue for some time. My original thought was that when the current price is reasonable but not too high, there is no need to pursue buying at a low point. Sometimes there is no obvious low price after waiting for one or two years. On the contrary, the price at which I buy it at the first time, after one or two years of dividend accumulation, is clearly visible as if I bought it at a low point two years later.

If I wait until it reaches the low point after two years, it may be similar to the two years of dividend accumulation. There is indeed a chance that I will make more profits, but the chance of missing out on slow growth and can't see low point seems to be higher. Although the principle is very simple, when I first started exploring investment, I actually struggled with my concepts. It took a period of thinking and imagination to gradually form my own concepts.

Investment may be a different house in the eyes of everyone, and the content and appearance are all determined by personal preferences. Sometimes we don’t like the style designed by others, and fine-tuning or changing the style will be more suitable for us. Just like when I read the book "Just Keep Buying", some parts of it may be different from my past understanding. I try to understand the author's expression, compare the differences with my original ideas, and choose a method that is more suitable for me.

Photo by

Toni Frost



Replies (0)