Forum Archive Index - October 2000

["Moose" <aorang@voyager.co.nz>]

Hi Jefley,
I wonder at the wisdom of "averaging down" on any share. Is it a 
case of trying the extricate yourself from a previous purchase that 
has come unstuck? ie throwing more good money after bad in the 
hope it will eventually come right.

Perhaps a fresh start with a newly researched stock is a better 
approach and then averaging up (hopefully) once the wisdom of 
your investment starts to show in an appreciating shareprice.

Most of us find it hard to admit that made a poor initial decision 
and that we perhaps would be better off walking away from that 
stock and starting again elsewhere.

As an example FFS shareholders will now be agonising over 
whether to put more $$ into a company that has not delivered up to 
their expectations in the hope that it will do so in the future.

Surely there are stocks that display better immediate prospects 
that their funds would be better off in. But how many will stick by 
their original investment decision and place more money with FFS.

Regards,
Moose

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