Key Features

• Weighted Average Cost of Capital (WACC) Calculation: It calculates an accurate stock purchase price proportional to the purchase amount ratio, not just a simple numerical average.
• Unlimited Multiple Purchase Registration: It provides a dynamic row addition feature for investors who divide their purchases into multiple installments rather than just one or two additional buys.
• Portfolio Weight Visualization: It shows the relative ratio of your existing investment funds and the new funds injected for averaging down in a neat circular donut chart.
• Target Average Price Reverse Simulator: If you set your desired average price, it mathematically calculates backward and tells you how many more shares you need to buy based on the last purchase price.

How to Use

1. What is Averaging Down?: When the price of a stock you bought falls below your purchase price, it is a strategy of purchasing additional shares at a lower price to drop the average purchase price per share. Even if the stock price rebounds only near your purchase price later, it creates an opportunity to quickly recover your principal or turn it into a profit.
2. Precautions When Averaging Down: Averaging down lowers your average price, but at the same time, it increases the investment ratio and absolute amount (value) of that stock in your entire portfolio. If the stock price continues to fall without rebounding, your losses can grow uncontrollably, so you must thoroughly evaluate the item's growth potential and safety, and execute it cautiously.
3. Why It Says Reaching the Target Average Price is Impossible: If the purchase price of the additional shares you plan to buy is higher than or equal to your target average price, no matter how many shares you additionally buy, the average price will not drop to the target price. This simulator mathematically calculates and suggests the required number of shares only within the achievable purchase range.