Direct Investment/Drip Plans

[kayboy]

(06-21-2015, 02:46 PM)Roadmap2Retire Wrote:

(06-21-2015, 01:31 PM)cannew Wrote:

(06-21-2015, 09:31 AM)Roadmap2Retire Wrote: You have no control over the shares purchased not only for dividend reinvestment, but especially true if theres a downturn and you want to move quickly to take advantage. The programs move at glacial speed. It takes days to instruct to buy more, when stock prices can change direction in a matter of seconds.

You may be correct when looking at short term price movements, but look back to the 2007-2009 financial crisis. Had you jumped in during 2007 and even 2008, you would have missed the real bottom of Mar 2009. The major drops may occur quickly, then rebound and often drop even lower. No one knows how low it will go before going up, so investing on a regular basis, regardless the price, works.

Yeah but with the slow moving speed, you are forced to follow the dollar cost average over a broader period of time. If a stock is dragged down because of an unrelated problem - I would want to add more shares to my position when I want to. With a DRIP program, its almost impossible to do so unless its a recession or the downturns lasts weeks/months. DRIP program provide no control (which I understand is good for most people to stop impulse buying and selling).

Thanks to all who chimed in. I don't disagree with anything that ya'll suggested. I guess it's sort of like a test. I plan on buying BMY with minimum amounts and increasing amounts every year. I guess maybe I just like to look and see what my money is doing while it's living somewhere else.