Adding to an existing holding

Mark2016 · 25 May 2018 at 1:21PM

Can anyone help me understand my logic is flawed. It’s about topping up an existing investment. I will use Legal and general as an example. Suppose one purchased £1500 worth of L&G shares when the price was 2.59. The individual then wants to add to his holding. If the share price is higher, should he purchase less than £1500 and suppose the price was less than the original investment, should he purchase more than £1500. Is this a better strategy than simply adding to the holding at any price? Many thanks.

jimjames · 25 May 2018 at 1:36PM

I'm not quite sure of the question. If you want to buy L&G shares and have £1500 available to do so then buy them. You'll obviously get different numbers of shares each time as the price varies.

Or did you mean that you want to buy 1500 shares and that the price will vary each time so you want to limit how much you spend? I would have thought the strategy depends on the rest of your portfolio and what you're trying to achieve with it

ColdIron · 25 May 2018 at 1:58PM

Depends what you are trying to achieve. If you baked a cake last week and wanted to bake another one but the price of eggs had gone up (or down) would you 1) buy fewer (or more) eggs and make a smaller (or bigger) cake or 2) pay more (or less) for eggs and get the same sized cake as last week? Only you can determine what your objective is, more money or more cake?

Adding to an existing holding

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