What Is Buying in Thirds?

By Matthew DiLallo – Updated Jun 11, 2025 at 2:17 AM

Key Points

Buying in thirds involves dividing an investment into three separate, equal parts.
This strategy helps manage risk by avoiding full investment at a single, potentially high point.
Provides flexibility by adjusting to stock price changes during the buying period.

Buying in thirds is a strategy to begin an investment position. Instead of purchasing the entire desired allocation to a stock at once, an investor will split their investment into three roughly equal purchases. This approach helps investors avoid a situation where they buy a stock, and it immediately declines in price.

Loading paragraph...

A person looking at a red stock chart on a tablet. — Image source: Getty Images.

Loading paragraph...

Related investing topics

Loading paragraph...

What Makes a Stock Price Go Up?

Stock price increases can be about more than supply and demand.

What Are the 11 Stock Market Sectors?

The larger stock market is made up of multiple sectors you may want to invest in.

Here's How to Calculate Future Expected Stock Price

Calculating the future expected stock price can be useful, but no single equation can be used universally.

How to Invest in Cava

The Mediterranean restaurant chain completed its IPO in mid-June 2023. Here's what you need to know to place an order.

Loading paragraph...

About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Apple and has the following options: short August 2025 $250 calls on Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.