November 22, 2007

Investment Update

Posted in Uncategorized at 7:48 pm by limitedcredit

Due to falling market prices for bank stocks (among others), I was able to purchase an additional four shares of Bank of America on Tuesday. If anyone is wondering, “who buys just FOUR shares?!” Well, for one thing, I do. My investment philosophy/strategy is one that follows the buy and hold principle and I buy ONLY if by purchasing more shares, my weighted average cost per share reduces, otherwise I do not buy. So, while short-term investors are nervous (hence why they are sending the stock prices in a downward manner), it allows me to add additional shares, which accomplishes two things:

     1) Reduces my weighted average cost per share
     2) Increases my dividend income

Consequently, in my modest point of view, this is more of what I would describe as a ‘win-win’ situation. Accordingly, to all you jittery investors out there, sell away. Continue selling for you are doing me a grand favour! 😛

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2 Comments »

  1. Bilal Jaffery said,

    Nice! Keep up with the investment updates. Have you looked into DRIP investment technique?

  2. Adeem Zafar said,

    If you mean directly purchasing shares from the company itself and having the dividends reinvested, then no but any dividends I do earn, I reinvest so in a sense I’ve got my own DRIP. 🙂


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