Let's compare the scenario if Mr. A will invest in January and February
January, NAVPS is P20 while February is P17. So kung moinvest siya January he'll get 1000 shares and on February 1175 shares. From his P40000 investment he'll get P54375 by the end of the year if NAVPS will go up to P25 per share (same values from my previous example). So what will happen if he waited a little longer and timed his entry? Gitingob niya ug invest pagFebruary ang P40000 getting 2350 shares. By the end of the year, he will get P58750. My point this time is not to compare Mr. A and Mr. B but to compare the possible gains that Mr. A will get if he'll time his entry well.
I'm not saying that investing regularly is not good, anyway mosaka ra man gyud na ang NAVPS but kung gusto ka nga mamaximize nimo ang gains, timing is relevant. Going back to the example, kung January moinvest si Mr. A and the value would still go down from P20 to P17, sayang ang time nga giubos from P20 to P17 because in that period of time he's not gaining. In fact, nasayang ang time and opportunity kay mas gamay ang shares nga imong napalit then nasayang ang time kay in a month's span wala nitubo ang investment. Which would you prefer, P8 gain sa NAVPS with more shares or P5 gain with lesser shares?




Reply With Quote
