Williams-Sonoma ($WSM): Probably The Best Company Among Home Good & Furnishing Retailers

$WSM $RH $ETD $ARHS $LZB $LOVE $W $HVT $FLXS $HOFT $BSET

Introduction

Perhaps one of the most complicated decisions in investment is averaging up. This is a well-known concept, which goes hand in hand with average down (which is perhaps even more well-known), but let me explain it in few words just in case there is someone who doesn't know it. Averaging-up basically consists of, once you have made an initial investment in a company, buying more shares as the company executes correctly its business plan and the stock moves up. In the case of averaging-down, it involves buying more shares when the price falls below our initial purchase price. The name obviously comes from the fact that, with this movement, we increase our average cost up (or down). Averaging down is usually the most common practice (and generally the most damaging) since in some way we try to compensate the bad feelings caused by the drop in the price with the certain relief caused by seeing that our average cost is reduced. Averaging-up (which in my experience tends to be muc…