For a thought experiment, I wanted to look at the results of what would happen if an investor went through life by adopting this strategy: during the first trading week of January each year, he bought $1,000 worth of Coca-Cola stock. During the first week of April, he bought $1,000 worth of Exxon stock. And during the first week of August, he bought $1,000 worth of Johnson & Johnson stock.
The logistics of this plan would be this: you’d need to come up with $3,000 every year, plus the negligible trading fees (probably around $25 or so each year). This works out to a little over $8 per day.
Originally posted 2013-08-12 22:42:36.