FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Day Traders must gradually start accumulating a well diversified portfolio of stocks which are cash generative. Stock market for beginners
by Asoka Samarakone Today at 8:24 pm

» RAIGAM WAYAMBA SALTERNS PLC (RWSL.N0000)
by sureshot Today at 7:59 pm

» GLAS will be winner with Super Gain.
by Promoney Today at 7:36 pm

» Is 12th a holiday CSE
by Vishwanarth Today at 10:46 am

» Kelani TYRES
by shan31 Yesterday at 9:07 pm

» VALLIBEL ONE PLC (VONE.N0000)
by shan31 Yesterday at 8:54 pm

» DIPD/HAYC/HAYL
by shan31 Yesterday at 8:06 pm

» TOKYO CEMENT COMPANY (LANKA) PLC
by shan31 Yesterday at 7:34 pm

» Crypto , Digital Currency Trading , Forex
by RJ1010 Yesterday at 6:27 pm

» South Asia’s first Disneyland to come up in Sri Lanka
by samaritan Yesterday at 1:42 pm

» LOLC Share Price
by madukp Yesterday at 1:27 am

» Daily Foreign Transactions
by Pradeep90 Fri Apr 09, 2021 7:53 pm

» TALAWAKELLE TEA ESTATES PLC (TPL.N0000)
by lakymahesh Fri Apr 09, 2021 6:20 pm

» Sri Lanka bans palm oil imports, tells producers to uproot plantations
by CHRONICLE™ Fri Apr 09, 2021 3:22 pm

» B P P L HOLDINGS PLC (BPPL.N0000)
by Bakka1988 Fri Apr 09, 2021 1:33 pm

» BROWNS INVESTMENTS PLC (BIL.N0000)
by madukp Fri Apr 09, 2021 12:33 pm

» ASPI Prediction by HNWI
by samaritan Fri Apr 09, 2021 9:09 am

» Price prediction on GRAN and TAFL
by desh87 Fri Apr 09, 2021 3:31 am

» දර්ශක අගයන් 8200 -9000 මට්ටමට හෝ ඉන් ඔබ්බට ජූලී මාසේ එන්න පුලුවන්
by kalu351 Thu Apr 08, 2021 11:25 pm

» The goal is to make money, not to prove you're right and the stock market is wrong. Stock market for beginners
by Asoka Samarakone Thu Apr 08, 2021 10:07 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Averaging up on a Share !

Averaging up on a Share !

Go down  Message [Page 1 of 1]

1Averaging up on a Share !   Empty Averaging up on a Share ! Wed Jul 10, 2013 6:14 pm

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Is it wise to averaging up on a share which had been giving out stead and good dividends ?
Your thoughts on the subject please.



Last edited by Kithsiri on Wed Jul 10, 2013 6:17 pm; edited 1 time in total (Reason for editing : spelling errors.)

2Averaging up on a Share !   Empty Re: Averaging up on a Share ! Wed Jul 10, 2013 6:54 pm

kelum

kelum
Senior Equity Analytic
Senior Equity Analytic
which share you are going to average and what is your cost now.

3Averaging up on a Share !   Empty Re: Averaging up on a Share ! Wed Jul 10, 2013 6:59 pm

K.Haputantri

K.Haputantri
Co-Admin
Never average down. Averaging up is OK.

4Averaging up on a Share !   Empty Re: Averaging up on a Share ! Wed Jul 10, 2013 7:15 pm

Dileepa


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Kithsiri wrote:Is it wise to averaging up on a share which had been giving out stead and good dividends ?
Your thoughts on the subject please.
If a particular counter is giving steady and good dividends like this ↓
http://forum.srilankaequity.com/t29104-good-long-term-buy#170889
it is perfectly OK to average up.
At least you must reinvest the dividends on those.
If you do not re-invest the dividend, your gain will be significantly less in the long run.
NEST is a perfect example,
Averaging up on a Share !   Nest-d10
Blue line is the annualized gain with dividend being reinvested and
Red line is without reinvesting.
If you continuously reinvest for 10 or so years, your annualized gain will be 1000%.
If you do not put any new cash in, you will still have 200% gain per year but it is lot less than 1000% pale

5Averaging up on a Share !   Empty Re: Averaging up on a Share ! Wed Jul 10, 2013 7:35 pm

pathfinder

pathfinder
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@Kithsiri wrote:Is it wise to averaging up on a share which had been giving out stead and good dividends ?
Your thoughts on the subject please.

Averaging is a way of making up of the mind of past loses Very Happy 
Buying a share again at a lower price because it is undervalued  is called collection.

@Kithsiri-In your case if it is JINS Very Happy  hey man collect the gem Laughing

6Averaging up on a Share !   Empty Re: Averaging up on a Share ! Wed Jul 10, 2013 8:58 pm

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
GLAS in my PF averages 5.84 and present market value is 6.40.
I was thinking of re-investing the dividends in the same share but that definitely would increase my average.
@ Dileepa
For very graphic explanation. Very Happy 
@ Pathfinder
Are you a mind reader or a pathfinder ?Smile 

7Averaging up on a Share !   Empty Re: Averaging up on a Share ! Wed Jul 10, 2013 9:23 pm

KDDND

KDDND
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@K.Haputantri wrote:Never average down. Averaging up is OK.

this is very SMART decision I TOO AGREE......but
MOST IMPORTANT IS...WHICH SHARES......!!!

There are only 15-25 shares...where you can do this strategy.......!!!

But there are many shares you can do AVERAGE DOWN.....!!!

I AGREE BOTH Strategies are working.......for selected shares....
otherwise AVERAGING UP might lead to BURNING......
why not AVERAGE DOWN also can lead to BURNING.....

So stay in touch and be SMART but less GREEDY...lead to cool SLEEP!

GOOD LUCK!

8Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 2:42 am

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
It depends..

History says (mostly) it is a wise decision. But it has to be a very slow process.

I had the same sort of dilemma with my CCS shares.
Had an average of 124 and later decided to buy more at a higher price. I know its a tough call. cos you don't feel to see your average price is going up.

9Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 2:55 am

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Read the following link couple of times you may get a vital message.
http://forum.srilankaequity.com/t6611-averaging-the-buy-price-to-minimize-risk-a-common-mistake-of-stock-traders
cheers 

10Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 9:10 am

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Thanks RedBulls.
The article mostly refers to bring the average down and in my situation it is the right opposite.
I think Dileepa's graphical explanation is more elaborated.
I think I need to look around more and do some calculations of my own.
Thanks again.

11Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 10:48 am

hunter

hunter
Moderator
Moderator
I do both; scaling up and down.
Both have the potential to maximize gains if wisely used.
Both have the potential to bring in disaster if blindly used.

I have experienced all four. Very Happy


PS: In fact there are four options.

1. Buy more when price goes up
2. Buy more when price goes down
3. Sell portion when price goes up
4. Sell portion when price goes down.



12Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 11:31 am

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@ Hunter,
Is Averaging just a Mathematical illusion only (if the company growing and have a reasonable dividend ratio too) ?

13Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 12:13 pm

hunter

hunter
Moderator
Moderator
@Kithsiri wrote:@ Hunter,
Is Averaging just a Mathematical illusion only (if the company growing and have a reasonable dividend ratio too) ?

The easiest way to understand this, is to think the averaging amount as a new investment; without linking to the existing amount. So, if the price goes up beyond now (averaging price); there will be additional profits.

Mathematically,  we can consider the total amount as a sample (or a collection) of individual (Quantum) investments.

If we go along this path further, we will understand;
Individual investments may give a loss or a profit: (regardless of that) the goal should be, at the end, to have a net gain on the total sample (collection).

14Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 12:42 pm

Kithsiri

Kithsiri
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@ Hunter.
Got it and Thanks. Very Happy 

15Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 1:38 pm

sriranga

sriranga
Co-Admin
May be the following links will help in addition to Hunter's and Dileepa's comments.

http://business.financialpost.com/2013/05/03/5-reasons-why-its-better-to-average-up/

http://www.investmentu.com/2009/October/why-great-traders-average-up.html

http://sharemarket-srilanka.blogspot.co.uk/

16Averaging up on a Share !   Empty Re: Averaging up on a Share ! Thu Jul 11, 2013 4:14 pm

suja


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Average up or down I am glad that this post has come about. This is one of the best posts that I saw for a long time. The key is select some companies that you think will survive for the next 50 years and who have survived for the last 20+ years look the benifit the customer is getting from these companies and whether it is a continuos business, invest in those companies and keep on doing it when ever possible and look at it in 5 years. You will rarely go wrong. If these are monopolies it is a bonus. Personally this has worked for me.

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum