Hi,
During these dreaded times, Is it better to average stocks that were purchased at much higher levels or buy new ones that are now at a discounted price?
Please advise.
Depends on the stocks you have.
If they are fundamentally good then you can buy more of them. eg : HDFC Bank, Reliance.
But if you have stocks which are like yes bank or any automobile stocks (tatamotors,ashok Leyland,etc) then it’s better to buy new ones.
I currently hold Heidelberg cement which is strong fundamentally. But i am seriously confused to average Heidelberg cement or enter/buy reliance since i don’t have any of it and it looks attractive at this rate.
Please advice
If you average stocks , your losses will be same , only your buy price to LTP will come down , if you are an investor , its better to buy the stock in small quantities , which you have confidence