Sean, you have been very clear (thank you... some how I missed it for years in the last newsletter) about investing in thirds, and only averaging down when an asset drops appreciably.

What about when you have new capital to invest (as opposed to the 2/3 waiting on the sidelines)? If a pick is still near/at/below the recommended buy price would you add to a position then?

If a new pick of ours is at or below the buy-at-or-below price, it's fine to make the initial investment with the first 1/3rd. But it would need to drop considerably before investing a 2nd 1/3 into that particular stock. In other words, if it doesn't bring the average breakeven price down enough, then its not worth adding the extra money into the investment. Also, we need some cash set aside for upcoming picks, yet to come out...and for when the stock market truly goes on sale for when its been declining for a long time or has dropped considerably in price (30-60%).