Listen to a Business English Dialogue About Drip feed
Emery: Hey Ariel, have you heard about drip feed investing?
Ariel: Hi Emery! Yes, it’s a method where you invest small amounts of money regularly over time, which can help reduce the impact of market volatility on your investments.
Emery: That’s right, Ariel. Drip feeding allows you to take advantage of dollar-cost averaging, where you buy more shares when prices are low and fewer when prices are high, ultimately smoothing out the average cost of your investments. Have you ever tried drip feed investing yourself?
Ariel: Yes, Emery, I have. I find it to be a convenient and disciplined way to invest, especially since it’s automated, and I don’t have to worry about timing the market.
Emery: I agree, Ariel. Automating investments through drip feeding can help remove the emotional aspect of investing and keep you on track with your financial goals. Do you have any specific investment goals you’re working towards with drip feed investing?
Ariel: Yes, Emery, I’m primarily investing for long-term goals like retirement and building wealth over time. Drip feeding allows me to consistently contribute to my investments without having to make large lump-sum payments.
Emery: That sounds like a solid plan, Ariel. Drip feed investing is well-suited for long-term goals since it encourages regular contributions and allows your investments to grow steadily over time. Have you encountered any challenges or drawbacks with drip feed investing?
Ariel: Not really, Emery. The only potential downside I can think of is that it may take longer to see significant returns compared to lump-sum investing if the market performs exceptionally well. But overall, the consistent and disciplined approach of drip feeding aligns well with my investment strategy.
Emery: That makes sense, Ariel. Patience is key when it comes to drip feed investing, as the focus is on the long-term growth of your investments rather than short-term gains. It’s great to hear that you’ve found a strategy that works well for you.
Ariel: Thank you, Emery. Drip feed investing has definitely helped me stay disciplined and focused on my financial goals. I would recommend it to anyone looking for a simple and effective way to invest regularly.