The Prudent Investor


July Update
July 9, 2007, 9:50 am
Filed under: Update

I made three purchases this morning.

CHTT    1 @ $65.88 = $65.88
CPO    1 @ $44.42 = $44.42
SJW    2 @ $33.01 = $66.02

My original intention was to place $100 into purchases each month, but I did want to build my position in Chattem.

SJW Corp. has recovered somewhat from its nasty drop, and could certainly take another small fall.  I will continue to make purchases, but depending upon the circumstances, next month I may decide to hold back on purchasing SJW Corp. to give the other two positions a chance to catch up.  If the company has fallen further, however, I will use the opportunity to make a purchase.

Generally speaking, I do not want any company to hold more than double the position of the average of the other companies.  Since SJW Corp. did have a head start, I will overlook this possibility for the moment.