I know I sound crazy and losing my mind to suggest to buy IBM at the moment when it is like a falling knife. I totally understand it is a lot of pain for those holding the IBM shares. If you are buying just hoping for a short-term profit, you should not buy at all. If you are in for long-term investment with dividend reinvestment, then you should be happy to see the falling of IBM stock prices. This will only be doing great to you over a long run as the lower its price goes, the more shares your IBM dividends can buy, which will bring you more dividends and more shares and so on. If you are nervous, just think about what Buffett is doing as I told you last week. He is buying more of IBM. You should do the same, period! I hope you can understand, for great companies like IBM with sound business in place, the lower its price goes, the less risk you will get when you buy and eventually it will bring you a lot more wealth down the road.
In this uncertain time when there is still a possibility that IBM may further go down, the best strategy is to buy IBM with dollar averaging, i.e. you buy a bit now and buy more if it falls further. This way, your average cost will come down as well. This is what I'm doing now.
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