Does “Dollar Cost Averaging Work”? ANSWER: NO! (But many “experts” say Yes)

As many of my loyal followers & Students know: I am an investor/”trader” and Owned a Financial Company for MANY YEARS (prior to “another retirement”).

Often I have spoken about “How I Do It” and How LOGICAL and Conservative Versus What (likely) Your Financial Advisor or Banker or “Retirement Specialist” says:

Yes, I use “HIGH PROBABILITIES of WINNING (PROFITABLE) as my guiding ways!

Contrarily “THESE MANY EXPERTS” who guide you will use THIS Method to CONVINCE YOU to “follow their lead” and HAND YOUR Hard Earned $$$$ over to them. They “Want you to TRUST THEIR Expertise” (sadly): DOLLAR COST AVERAGING is “the Method of Many”!

BUT Below I will list (QUOTE) a person who DID THIS for 13 Years Religiously to GROW HIS WEALTH.  As he says here “It FAILED”. He LOST MONEY!

Read HIS EXACT WORDS and THINK “how much you know; what you do and Who You Trust to “Take Great Care of You”. (I hope THIS Changes Your Minds and Causes YOU To Change Your Ways. I can help guide you with that easily).

The Quote: ”

The big takeaways from my 13-year experiment are as follows:

  • Dollar cost averaging into GE stock, for me, has been an epic fail. Reality has not produced the promise of dollar cost averaging, and compounding theory.
  • As recently as a couple of months ago, a 13-year experiment in dollar cost averaging into General Electric stock and reinvesting all dividends has produced a zero nominal return. The real return, even with recent upward price movement, is negative.
  • Dollar Cost Averaging into a savings account with even a 0.5% APR would have produced better results.
  • With a zero return at 13 years into my dollar cost averaging experiment and using the Rule of 72, it is unlikely I will ever see a meaningful rate of return on my investment.
  • The direct stock plan has proven to be inflexible. The only action taken easily online is to purchase more stock. Ending the investment, selling, and halting the dividend reinvestment plan is done via snail mail and batch processing where the company determines the price.”

BTW, I cannot give credit to the man as he does not want his name mentioned, BUT you can read all his words at this link: http://seekingalpha.com/article/3113336-ending-a-13-year-experiment-in-dollar-cost-averaging-and-dividend-reinvestment?ifp=0

http://seekingalpha.com/article/3113336-ending-a-13-year-experiment-in-dollar-cost-averaging-and-dividend-reinvestment?ifp=0

—- As I OFTEN HAVE SAID “An expert is one who THINKS he Knows Everything;  but in reality KNOWS VERY LITTLE and Much of it is SO WRONG”. — Never listen to EXPERTS!!!!!

If you WANT TO Become EMPOWERED and SUCCESSFUL, let me know!

Advertisements

About Warm Hearted World

Extensive - Widely Varied Background ---- Because EVERYTHING CONNECTS TO EVERYTHING & EVERYONE --- For Solutions To All Issues ---- To Make The World A Better Place! (God Must Be Crying!). For Your & Everyone's Health-Wealth-Happiness! Unlike MOST of the World ----"I PRACTICE WHAT I PREACH" (by the way: It is not about religion. It is about LIFE & LIVING! I am NOT YOUR AVERAGE GUY! My Goal & Slogan is: "If I can get everyone to STOP and THINK (really think with an open mind which is RARE) for 5 minutes - I Just CHANGED THE WORLD For The Better".
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s