Do you have a rule of thumb/rough gauge for averaging down in terms of percentage?
Say like how many percent a drop in prices warrant an addition, assuming the business is hit by short term headwinds (resulting in large negativity of prices) but in the long term it is still doing well.
I’m thinking 10% is rather near, but not sure if 20% or 30% is too far.
Of course, capping total weightage of the portfolio is important to ensure that we do not overexpose ourselves to risk.
Our averaging down percentage is between 10-20%. Personally, I will wait to at least 15% then I will average it.
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