Chapter
Lump Sum vs. Dollar Cost Averaging
57:55 - 1:02:10 (04:14)
This podcast discusses the differences between lump sum and dollar cost averaging and when each method is appropriate, as well as the behavior behind each.
Clips
In this podcast, the speaker explains the concept of dollar cost averaging according to Benjamin Graham, referring to it as buying over time instead of a lump sum investment, and discusses its implications in investment planning.
57:55 - 59:06 (01:11)
Summary
In this podcast, the speaker explains the concept of dollar cost averaging according to Benjamin Graham, referring to it as buying over time instead of a lump sum investment, and discusses its implications in investment planning.
ChapterLump Sum vs. Dollar Cost Averaging
Episode#462 - Nick Maggiulli - The Best Way To Build Your Personal Wealth
PodcastModern Wisdom
The term "dollar cost averaging" is often used interchangeably with "just keep buying", causing confusion among investors.
59:06 - 59:55 (00:49)
Summary
The term "dollar cost averaging" is often used interchangeably with "just keep buying", causing confusion among investors. The speaker suggests picking a term and sticking with it, and prefers the original definition of dollar cost averaging as buying over time.
ChapterLump Sum vs. Dollar Cost Averaging
Episode#462 - Nick Maggiulli - The Best Way To Build Your Personal Wealth
PodcastModern Wisdom
The average investor is better off putting their money into investments right away instead of trying to time the market.
59:55 - 1:02:10 (02:14)
Summary
The average investor is better off putting their money into investments right away instead of trying to time the market. Averaging in is only beneficial behaviorally when the market is falling, as it is likely to bounce back over time.