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2024 has been a very good year for many top Canadian stocks. At some point in 2024, there is likely to be a pullback. However, bull markets can go on far longer than you wish or imagine.
You may not want to wait forever to deploy your capital. Many successful investors find long-term value in averaging into their holdings.
Average-in to build a stock position
If there is a stock you really like but are worried about its elevated stock price, you can start by deploying a third or a quarter of a total position. As the market ebbs and flows, you can gradually add and build a larger position.
Great-quality businesses tend to trade closer to new highs than annual lows. As a result, you are likely to have to pay up for quality. Fortunately, if you can hold a stock for the long term and average in, you can build a position with an attractive cost basis.
If you are looking for some stocks to average into in…
