Are you looking for a strategy as you start your investing journey? On this episode, I discuss how peso-cost averaging works. It's a very simply concept that you can apply immediately even if you have zero experience with investing in the stock market.
Peso-cost averaging refers to the practice of dividing an investment of an equity up into multiple smaller investments of equal amounts, spaced out over regular intervals.
The goal of peso-cost averaging is to reduce the overall impact of volatility on the price of the target asset; as the price will likely vary each time one of the periodic investments is made, the investment is not as highly subject to volatility.
“In the business world, the rearview mirror is always clearer than the windshield.” - Warren Buffett #investing #strategy #stocks #stockmarket #finance #personalfinance
