Railroads like CP have done well over 10 years. My strategy is to buy and hold railroad stocks for the long term. Many railroad also have direct buy programs were you can buy stock commision free from the railroad or there transfer agent. So should a 2 or 5 or even 7 doller diffrence from week to week matter when I am investing over the long term using doller cost averaging?
Since you asked, just a word of caution. Certainly transactions costs are an important consideration, especially if your employer gives you a price discount, but have you considered the overall picture, returns versus risk? Railroads are cyclical stocks and are very likely to do poorly when the next recession hits. So having a diversified portfolio is more important, as employees of Enron and the airlines would tell you. That is over the long run you’re likely to realize greater returns with less risk by diversifying. If you were managing a trust, a single sector strategy would be considered highly imprudent by most professionals.
As long as it’s your own money.
BTW, what’s up? You’re buying CP stock and have the moniker “BuyCSXrailroadStock!”, or are you referring to railroad stocks in general?