Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering

How does Value Averaging work in practice?
The idea is you would also have a cash allowance in the portfolio originally - say 25%. So in this scenario, 375K in stock and 125k in cash. and assuming the goal is 1K increase in stock value you would buy 38.5K of stock at the now lower price.