Fools rush in where angels fear to tread

So after yesterday’s huge share sell off (the FTSE100 ended down 4.7pc – its biggest one day fall since March 2009), the Amateur Investor was keen to take advantage of “sale” prices. So will this particular “fool” soon be parted from his money?

I have made previous posts about Aviva, and my last purchase was on 12 September 2011 when Aviva shares dropped below 300p, which I had set as my next buying price.

I think I’m right in saying that Aviva is currently the highest yielding share in my High Yield Portfolio at the moment, so any fall in the share price would help cement this position.

So I purchased further shares for 279.94p (including Stamp Duty) to reduce my average buying price from 330.67p to 320.81p.

According to The Share Centre, Aviva’s forecast dividend for 2012 is 28.45p, so this would mean my holding is currently yielding 8.87% (and the shares purchased today are actually yielding 10.16%).

While my Aviva holding is held for the income it produces, I think the purchase today will quickly show a capital gain too.

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