Do not fixate on "averaging down", that is a mug's game! Don't get me wrong, I am not saying that you should not buy either Imperial Brands PLC (IMB) or British American Tobacco Group (BATS), only that if you do so it should be because they present a good buying opportunity at the current price, not because you want to make your overall purchase price look better!
With regard to share prices bottoming out, my first and only purchase of BATS was on 10 Jan 2019 since when the value of my holding has increased by 10.38%. Of course, during the last couple of months I have twice topped up my IMB holding and both are underwater price-wise!
So who can tell whether the prices have now bottomed out? Well not me that is for sure and I would wager that neither can you, so forget about trying to "Time the Market"! Just determine whether the dividend looks to be sustainable and the current price looks to be good value. If "Yes", buy. If "No", don't buy!
Ian
Hi Ian,
Thanks for your comments. I should have stated that averaging down wasn't the sole purpose of considering buying more IMB, but it would be a consequence, if I did. It will be my 3rd chunk of IMB if I do, and I've never manged to time the market yet, so I won't be trying this time either. At least half of my HYP shares that I've bought over the last 2 years, when starting my HYP, are underwater price wise, and while it's not nice to see that, I am managing to handle the fact much better now than 2 years ago!
Cheers!
Brendan