After two days in the wilderness, I decided to take advantage of some of these “cheap” share prices and do some Pound Cost Averaging (I’ll explain Pound Cost Averaging in a post one day).
Initially I wanted to buy some more BHP Billiton as their price had dropped from the 2269p I had paid for them, to 1952p this morning. But the buy/sell price had a large spread this morning, and I just couldn’t get the shares for the price I was willing to pay. So I moved on.
St James’s Place
I bought a few St James’s Place shares right at the beginning of my journey as the Amateur Investor (paid 376p per share on 1st August and 369p per share on 2nd August).
With the shares hovering around 332p this morning I bought in and reduced my average buying price from 374p down to 350p (including stamp duty – remember, I’m not paying dealing commissions at the moment).
Next came Greggs (which was tipped in The Independent today – see today’s newspaper share tips). My average buying price stood at 521p. I managed to pick some up at 447p which brought my average cost per share down to a smidgen over 492p. And right on cue Greggs shares went down to 444p, that’s another 3p per share I could have saved. No matter.
Bwin.party Digital Entertainment
Finally, for now, came Bwin.party Digital Entertainment (BPTY). I’d make a couple of purchases of these since 1st August (they were tipped in Investors Chronicle on 27th July). Since my purchases they had dropped quite a bit (hasn’t everything!), My average buying price was 130p. Buying more at 103p this morning reduced my average buying price to 124.6p
That’ll do for now. The FTSE100 is up just 0.1% at the moment. Off to read my Investors Chronicle magazine now.