You Asked, I Replied: Which Is The Better Option, Peso Cost Averaging Or One-Time Investment Of A Large Amount?

Both options are good. But first things first, you should ask this question, "Does it make business sense to buy this stock at this price?"

I would be biased here. For me, you should adapt a Value Investing mindset.

It's not about the option of buying on a monthly basis or doing a one time purchase. Regardless of what you do whether you cost average or you buy one time, the most important thing to consider is to buy a strong company when it's undervalued.

Warren Buffett's common-sense advice to aspiring investors is to pick stocks that possess a durable competitive advantage and buy it if it's trading at a price below your intrinsic value.

Once you determined a company that possess a durable competitive advantage, how you deploy your capital will also be crucial.

Doing a cost averaging method is a good option because it spreads the risk of volatility. However, buying one-time is also good if you perceive that the price is in it's lowest.

When I invested in MEG, I did a cost averaging method and made 14%.

When I invested in WPI, I did a one-time buy since I believed that I'm really getting a bargain at almost 70% to 75% margin of safety. I made around 30% from that trade.

Right now, I'm in the process of accumulating as much FB as possible because I believe the stock is undervalued and has a very huge upside potential in these coming months. I'm buying on a set price I think that makes sense. I do a strategic method of buying using monthly pivot points.

Inside the Truly Rich Club, members implement the Strategic Averaging Method (SAM). It's a system where you only buy at a specified 'buy below price'.

So you see, It's not about which is a better buying method. The point is, you should be buying strong companies at a cheap price regardless of what your buying strategy is.

All the best!

Mark