DOLLAR COST AVERAGING - Rocky's Broccoli Bake

Hi there and welcome to another addition of DIGestingINvesting.

Yesterday I was at the supermarket and saw a great deal on broccoli (superfood) and was happy to see that it was on sale for .89 a bunch. I was delighted to see this delectable vegetable was less then what I had paid for it a few days earlier ($1.29) So I loaded up my grocery cart with 3 bunches of broccoli for a total cost of $2.67

Now this is where the real value comes into play. When I purchased 3 bunches of broccoli for $2.67 and add to that the one bunch purchased earlier for $1.29 my total average cost for the four bunches was $0.99 (.89x3 + 1.29 / 4)

This is an example of (short term) Dollar-Cost-Averaging.

Now here is something to think about. How many times have we been out at the supermarket and found a 'deal' on a food item and purchased it because it was on sale? Then take the item(s) home and toss it in the freezer for some future meal, knowing that it will keep for weeks, months ... years!? yuck!

In the investment world, Dollar-Cost-Averaging can be applied to good quality investments that offer good value in the long run ... very much the same principle as our shopping purchases. In the investment world, Dollar-Cost-Averaging requires a long term systematic discipline that requires regular purchases (monthly/quarterly/semi-ann/annually)

If I purchase $500. worth of a good quality investment that is priced at $10.00 / share I will purchase 50 shares of that investment. If the share price drops to $8.00 / share and I invest another $500. in that same investment, I will purchase 62.5 shares of that same investment, thereby bringing my total number of shares to 112.5 with an average cost of $8.89 ($1,000/112.5 shares) If I invest another $500. when the share price rises to $9.00 I will acquire another 55.55 shares ($500/$9.00) thereby bringing the total share balance to 167.5.

With $1500 invested and a total share balance of 167.5 shares the average cost is now $8.95.

When the share price rises back to the original $10.00/share the investment value is now $1675. ($10.00x167.5 shares)

Dollar-Cost-Averaging works well with mutual funds (index funds) and can be set up for automatic deposits. With a long term horizon and a good quality investment, Dollar-Cost-Averaging is an effective investment strategy.

'Hey Jeff, I get it! Now what about that broccoli recipe'?

If you are looking for a quick and easy broccoli casserole, something that the kids will enjoy, then you're going to love this.

Rocky's Broccoli Bake (named after our son Connor who loves his broccoli)

Here's what you need;

3 eggs

2 cups cottage cheese

1 onion (chopped )

1 cup of shredded cheddar cheese

1/4 cup of flour

1 bunch of cooked, drained, chopped broccoli

I like to add a 1/2 cup of mushrooms but the kids would prefer that I don't.

salt and pepper to taste.

MIX everything together and pour into a buttered baking dish.

Bake at 350 degrees for about 40 minutes and you're good to go.

Quick.Easy. Nutritious. Tasty.

Now, if you head off to the supermarket once a week and purchase a bunch of broccoli every time you go, you will not always pay top dollar for your purchase, but you may not always get the best deal of the week. In the long run, you will have paid the long term average price.

For more details on Dollar-Cost-Averaging you can use 'Google', or you can post your questions at the end of this blog.

In the meantime, if you try this broccoli recipe with the Cinnamon Salmon and Blueberry Shazzam from our earlier posts you will be enjoying 3 amazing Superfoods all in one sitting.

Shazzam!

Thanks for stopping by feel free to provide us with your feedback for future posts.

DIG IN!

Jeff & Beverley