SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: WogofWallStreet who wrote (60000)10/23/2017 2:44:39 PM
From: E_K_S   of 78741
 
Re: Graham selling rules

Congratulations on Post 60K!

I tend to hold my GN investments no longer than 2 years unless they have gained to their GN fair value AND I see good future earnings growth. Then I will peel off shares, typically 10% for every 10% move higher in the stock.

If the GN position is a 'value trap' and nothing in 18 months, I will close that position out (if not earlier).

If the GN position is still undervalued according to the GN valuation and it's been 18 months, I tend to want to close it out and put the monies into another GN position that is undervalued. A lot depends on the company story but if I find other undervalued GN opportunities, I will close out the under performer and move those funds to the new position.

If GN has reached fair value, it becomes a source of funds for a new undervalued GN position. I will hold if it pays a better than average dividend but will peel off shares (or close out position) if I can book a long term capital gain.

This has worked well for me. Since my portfolio only holds about 20%-30% of GN positions, I never see a 50% gain from these to the portfolio over 24 months but over time I do book a better than average return from my GN position (looking back over the last 15 years).

Hope that helps

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News