The Prudent Investor


August Purchase
August 8, 2007, 11:55 am
Filed under: Update

I purchased three shares of SJW at $30.64 yesterday.  I decided to put all of the money into SJW because of the drop it had seen, but I am at the point now where it represents half of the portfolio, so future money will need to be spread out.

I am currently on vacation and have not been listening much to the financial reports.  The volitility reminds me of the late 1990’s, although the valuations are not nearly as wild as they were then.

 We were due for a correction and a good 5% shock to the system appears to have done the job – hopefully.  I will not be surprised to see things slide down a little more, but there were a number of things that needed to be purged from the system.  It will be a while before the full effects of the credit crunch can be determined, so without a clear direction it is not surprising that wild swings will be the result for a while.  As far as I’m concerned, I’ll just keep plugging along without the volitility bothering me too much, as I am more focused on the distant future.