So, I think by not
buying more of stocks he already owns he is watering them down in much the same way an individual investor would be when he sells all the stocks he owns in equal proportions.
Same goes for Smart Beta ETFs that attempt to beat the market by
buying more of some stocks and less of others relative to the index based on a handful of idiosyncratic factor exposures.
On the other hand, value - weighted indexes seek not only to avoid the losses due to the inefficiencies of market - cap weighting, but to add performance by
buying more of stocks when they are available at bargain prices.
Buying more of that stock at a reduced price might pay off once the market begins to climb again.
First, from a tax point of view, reinvestment of dividends are treated as if you got the cash and
bought more of the stock yourself.
Many of these products are market capitalization - weighted.4 To stay in line with benchmark allocations, passive funds
buy more of the stocks that get bigger while selling the stocks that shrink.
The fund's discipline kept them from wavering: they stayed 100 % invested and rebalanced monthly to
buy more of the stocks that were cratering.
Every time you add funds to your account, M1 will automatically
buy more of each stock.
I might
buy more of a stock that I already own, or it might be a wholly new stock.
And, in such an environment, we give ourselves a better chance of reaching more objective and better decisions — which, rather than rushing to sell up, may well be to do nothing and wait for further information or even to
buy more of the stock.
Got ta sell their losers and
buy more of the stocks that have gone up so they can «look good», performance be damned!
In addition, index funds
buy more of the stock as its market capitalization increases, meaning its share price has gone up.
It is really tough to
buy more of some stock that you have bought at a lower level.
It tends to
buy more of a stock when it goes up and hold less of a stock when it becomes more reasonably priced.
My only regret: I wish I would have
bought more of this stock and less of MCI WorldCom several years back.
I'm not that interested in indexing, although for individuals who want completely passive exposure to stocks, value weighting certainly makes much more sense to me than market weighting (because market weighting systematically
buys more of a stock as it goes up, thus forcing you -LSB-...]
Buffett has said many times that
you buy more of the stock that you believe in.
Not exact matches
A strategy that involves
buying call options — contracts betting a
stock will rise — around a company's analyst day has returned an average
of 21 % since 2004, according to data from Goldman, which looked at
more than 7,000 instances.
The
stock has soared
more than eight per cent over the past week on speculation the company could
buy the retail operations
of oil and gas giant Hess, which owns about 1,350 gasoline stations in 16 East Coast states.
Then in 2010, when it
bought BNSF, Berkshire split the B shares 50 - for - 1, letting
more of the railroad's shareholders swap their
stock for Berkshire
stock if they wished.
«
Buying their
stock is going to look
more attractive than the price
of some
of the acquisitions in the market,» he says.
Good news, everyone: Since both realized and implied volatility have declined over the past couple
of weeks, JPMorgan and Deutsche see those CTAs spring - loaded to
buy more stocks.
This includes $ 4 million in severance pay, the accelerated vesting
of 5.1 million unvested
stock units (worth about $ 15 million) plus options to
buy more, as well as a cash payments
of either $ 1 million or the cash bonus he would have been entitled to in 2015, whichever is less.
By early December,
more than 60 %
of analysts covering FB gave the
stock a
Buy rating.
We may be now shifting to an environment where corporations
buy less
of their own
stocks, but investors actually
buy more stock.
Because these big lists
of stocks are
bought and sold simultaneously, they cause the action
of all
of the individuals
stocks to become much
more correlated than it had been in the past.»
«My fondest dream,» he wrote in one recent commentary, «is that I will give my gold coins to my great - great grandkids some 70 - 80 years from now, and they will be rather embarrassed that their Papa John
bought all that much
of that barbarous yellow metal instead
of more biotech
stocks.
Perhaps
more surprising is Buffett's second - best pick over the past year, as it has recently been known
more for controversy than outperformance: United Airlines
stock, up almost 44 % since the investor
bought it in the third quarter
of 2016.
With such an enormous valuation gap and such a massive amount
of cash on the balance sheet, we find it difficult to imagine why the board would not move
more aggressively to
buy back
stock by immediately announcing a $ 150 Billion tender offer (financed with debt or a mix
of debt and cash on the balance sheet).
---------------------------------------------------------- Read
more from Mad Money with Jim Cramer Cramer Remix:
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buy ahead
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One other Berkshire purchase in 2010 — Munich Re — deserves mention for one unusual reason: Buffett personally
bought 100,000 shares
of that
stock while Berkshire was loading up with
more than 19 million shares and making itself a 10 % owner
of Munich.
Buying single
stocks in search
of the next unicorn is certainly
more fun than a diversified low - cost investment strategy, but trying to win big comes with a lot
of unnecessary risks and questionable rewards.
Vistra Energy will
buy Dynegy in an all -
stock deal, the U.S. utilities said on Monday, creating a company with a market value
of more than $ 10 billion.
Carl Icahn already owns nearly 20 %
of Herbalife
stock, and he's thinking about
buying a lot
more — if not all
of it.
But if average inflation were to
more than double to 4 % over the next 30 years, a renter who put in the equivalent
of a downpayment as well as annual principal payments into the
stock market instead
of toward a house would end up a little
more than $ 415,000 richer 30 years later than someone who
bought, even after factoring in the cost
of renting.
When investors
buy call contracts, they are hoping the
stock will rise above the strike price by
more than the cost
of the trade.
Rebalancing involves disposing
of portfolio holdings in asset classes that have risen in value and using the proceeds to
buy more of your asset classes that have risen less in order to restore a desired balance between
stocks and bonds.
A majority
of analysts have a
buy rating on the
stock, according to S&P Capital IQ, and a big reason for that is that the technology landscape is becoming that much
more complex for business.
Think about it; if you were unlucky enough to
buy into the
stock market at the peak in 2008, just before the financial crisis hit full force, your gains (excluding dividends) wouldn't
buy you much
more than two loaves
of price - fixed bread at Loblaws and a bag
of President's Choice sour grapes.
Traditional avenues
of securing capital such as SBA - backed loans have become
more limited, and with recent
stock market declines, fewer buyers have the funds necessary to
buy without a loan.
That's because many big enterprises regularly issue
more stock than they
buy back, using the proceeds for repurchase
of new shares from newly exercised options and vested restricted
stock, for M&A, and for secondary offerings.
According to Bloomberg, 70 %
of analysts think it's a
buy and many think the
stock, which is trading at $ 42 can reach $ 50 or
more over the next 12 months.
Personally, I'm
more of a value investor and absolute return investor and will
buy stocks that seem
more likely than not to have a place in the portfolio.
It's a (mostly) short term, higher risk, higher reward place to invest cash that has a low correlation with the
stock market, but is far
more passive than
buying and managing properties, has
more opportunity for diversification than private placements (minimums
of 5 - 10K, rather than 100K), and most
of the equity offerings (and all
of the debt offerings) provide monthly or quarterly incomes.
It reminds me
of the friend who kept investing
more money into Exodus during the dot - com bust by saying, «Hey, the
stock was at $ 80 before, so it must be a screaming
buy at $ 20.»
More active investors might also want to consider having a cash reserve, and creating a watch list
of stocks to consider
buying at certain price points, to prepare for
buying stocks in the event
of a downturn.
One school
of thought is this: If you have
stocks that aren't overvalued when you
buy them, downturns in their value give you an opportunity to purchase
more stock at a cheaper price.
Technology
stocks rose Monday after Intel Corp. raised its quarterly dividend and said it would
buy back
more of its
stock.
Approximately 90 % or
more of our ETF and
stock breakout entries will have some sort
of a «higher swing low» in place prior to our
buy entry, and this setup was no different:
It's
bought back 14 percent
of its
stock over the past three years, and with its $ 32 billion cash hoard, the company might continue to
buy more or make strategic acquisitions.