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Article: Buy the dip/market timing vs dollar-cost averaging


Liberty
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https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/

 

I thought this was an interesting thought experiment. Obviously it's not what investing in practice is like, but I think it shows the challenge that those who prefer to sit on lots and lots of cash and then only invest during a big crash face. They'll look really cool during the recovery and claim insane CAGRs, but if you look at it over long periods, over the whole cycle, it becomes a lot harder, especially if your timing isn't perfect (and who can claim that?).

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why not both? steady DCA plus a sprinkle of lump sum during a downturn. Watching Berkshire he seems to be doing this too, regular small buying plus major buying at pivotal moments.

 

My preferred approach is to mostly stay fully invested and sometimes switch from more expensive things to less expensive ones, or from things that have grown too large in the porfolio to new ideas when they are available at a good price

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