Seeking Alpha
  • Dr. Kris
    For all of you who are tempted to load up on AAPL, GOOG, etc. please review my article on averaging down: http://seekingalpha.com/a/fdl7
    11/15/12
    Reply (26)
    • Dr. Kris: Yes, this is a shameless plug but I do think it is very market relevant and could save you a lot of upcoming pain.
      11/15/12
    • Joe Springer: My plug is more shameless - I am piggy-backing someone else's post! Read why I think Apple has a lid in the near term: http://goo.gl/d6T6k
      11/15/12
    • Joe Springer: That's a good article you wrote Kris, thanks!
      11/15/12
    • Bildar: Excellent article, Dr. Kris.
      11/15/12
    • Dr. Kris: Thanks for the kind words! Remember what can happen when you try to catch a falling knife.
      11/15/12
    • realornot: avg down won't work. just trade in and out or cut your losses. Good wake up advice!
      11/15/12
    • weed: I'll be reading it with my after market snack.
      11/15/12
    • J. A. Saglimbeni: Averaging down works only on quality, so in the case of AAPL...just might work, but with stuff like HPQ..just mmight not
      11/15/12
    • Bildar: J.A.: Quality helps, but there are always exceptions, and well regarded, volatile momentum stocks often fall within that group.
      11/15/12
    • Hillbilly Stock Star: High dividends too, depends on timeline, some stocks family owned since 1950's!
      11/15/12
    • Dr. Kris: J.A.: How exactly does one determine "quality"? Inquiring minds want to know.
      11/15/12
    • Joe Springer: RE: Quality 700 pages of Zen and the Art of Motorcycle Maintenance and you are no closer to the answer, Phaedrus: http://goo.gl/pSWy6
      11/15/12
    • Joe Springer: That question is what the book is about, describe "quality"
      11/15/12
    • Dr. Kris: I tried to read it a long time ago and fell asleep. Way too zen for me.
      11/15/12
    • Joe Springer: GREAT first 100 pages, then 600 more pages thinking he's gonna wrap this mess up somehow...ugh. Most disappointing book ever.
      11/15/12
    • REIT: i like the advice, i add its like pouring rain your clothes wet and it gets heavy averaging down use an umbrella or stay inside
      11/15/12
    • Bildar: I wrote some posts about averaging down earlier today: http://seekingalpha.com/s/99wyh
      11/15/12
    • Ocean Man: AAPL's last swoon was in April and May of this year. Fell 17% from 636 to 530 over 6 weeks, not too different from now. One could have
      11/15/12
    • Ocean Man: averaged in to about 580, maybe lower if you were increasing your buy sizes as it dropped. Stock went over 700 only 4 months later.
      11/15/12
    • Ocean Man: You could have sold there for a gain of over 20%. In fact, there's never been a time when averaging down on AAPL hasn't led to gains.
      11/15/12
    • Bildar: OM: That doesn't make it a strategy applicable to all stocks.
      11/15/12
    • Bildar: Also, in the case of AAPL, those who are less patient and with pockets less deep, will capitulate at a loss.
      11/15/12
    • Bildar: *applicable to all stocks in all situations.
      11/15/12
    • Bildar: AAPL's decline from 1991, '92 went all the way to 1998. From 2000 it went to 2003 before it started back up.
      11/15/12
    • Bildar: That's a long time to hold a big, averaged down position, especially one that isn't paying a big dividend.
      11/15/12
    • Bildar: If you normally own 20 or so stocks, an 8x position is a big chunk of the portfolio.
      11/15/12