08-26-2014, 01:40 PM
(08-26-2014, 09:08 AM)rapidacid Wrote:(08-25-2014, 09:29 PM)CritMass Wrote: And hey, I bought the stock/fund/etf in the first place, didn't I?? It was good enough then, it's still good enough now.
Your process is your own, but this is super flawed logic.
The logic here is flawed only if the investing thesis changes significantly. Sure, if a stock becomes obviously overvalued, you might want to stop automatic reinvesting, but that doesn't mean that automatic reinvesting is wrong in all cases. My own example would be MO. I still think that MO is a buy at today's prices, and so I am glad that I've been reinvesting for the past several years, even as the price has gone up from my original buy-in amount. I haven't, and probably wouldn't, allocate new money to MO, but I am perfectly happy to be accumulating more shares in the background.