1. Dollar Cost Averaging a The essential investment strategy for your monthly savings

2. Warren Buffet Investing is the art of putting cash in now to get evenmorecash out later 3. Dollar Cost Averaging

b) Lump sum investment

a) Regular savings (from your salary) Two ways of adding capital to your portfolio: 4. Investing your ongoing monthly savings

Your stream of savings of income

Ongoing (relatively small) amounts of money

Build up into a chunk of money over time

Position this stream cheaply now, to profit later

5. Dollar Cost Averaging Warren Buffet Investing is the art of putting cash in now to get evenmorecash out later 6. Dollar Cost Averaging collecting units

Confiscate those assets and attach them to my holdings

7. Dollar Cost Averaging What market characteristics should you look for? 8. Collecting units in a rising market 233 $50 $45 $40 $35 $20 $30 $55 227 222 217 213 204 Total Units1316 9. Collecting units in a dipping market 233 244 Total Units1695 294 345 323 256 $50 $45 $40 $35 $20 $30 $55 10. Collect more units in a dipping market $50 $45 $40 $35 $20 $30 $55 244 294 345 323 256 233 227 222 217 213 204 11. DCA: Collecting units 1316 units 1695 units You collected In rising market In dipping market 12. DCA: Collecting units $ 64,498 $ 66,105 You invested 1316 units 1695 units $4,498 $ 6,105 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 7% 10% 13. Collecting units in a rising market Total Units1316 Now worth $ 64,498 $50 $45 $40 $35 $20 $30 $55 14. Collecting units in a dipping market Total Units1695 Now worth $ 66,105 $50 $45 $40 $35 $20 $30 $55 15. DCA: Collecting units $ 64,498 $ 66,105 You invested 1316units 1695units $4,498 $ 6,105 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 7% 10% 16. Dollar Cost Averaging What happens if you Dollar Cost cheaply then wait? 17. Total Units1316 Now worth $ 65,814 Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55 18. Total Units1695 Now worth $ 84,750 Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55 19. DCA: Collecting units $ 65,814 $ 84,750 You invested 1316 units 1695 units $5,814 $ 24,750 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 10% 41% 20. 7% 10% Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55 21. 10% 41% Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55 22. Dollar Cost Averaging Warren Buffet Investing is the art of putting cash in now to get evenmorecash out later 23. Dollar Cost Averaging Dollar Cost a cheap market to lower your average purchase price 24. Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55 25. Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55 26. DCA: Collecting units $ 35.40 $ 45.60 $50 $45 $40 $35 $20 $30 $55 27. Dollar Cost Averaging

Confiscate those assets and attach them to my holdings

28. Where investors go wrong $ 1,000 invested monthly for 5 years What your statements will look like