Could you let us know what fraction of the total they own the 280,000
shares the institution sold represents?
I think you aren't a Cabot subscriber. Lutts's position, shared by
Neil Mack, is that it makes less sense to try to trade in and out of
what he calls his "heritage" stocks -- the truly great companies for
the long haul -- than to simply ride out any correction. He cuts
losses short in most of his stocks. With a few special stars, he says
hold on. For one thing, you aren't a fortune teller. For another, he
asks you to consider this: When you sell and take profits, by the time
you've paid your federal and state taxes and transaction fees, the
next stock you buy even if it's a replacement (and of course you're
locked out for thirty days (IRS tax-loss rule)) must go up about
twice as fast as the one you sold for you to stay even with it.
I've ridden out 3 serious corrections since I bought PRST, one almost
40%. Today, even after the fall from 200/share, my PRST is worth
534% of my original investment (and that's after I took profits on
some of my shares).
Maybe if you were in Neil's position, you'd be, like, REAL
enthusiastic too. And a person's adrenaline gets up. It's all pretty
exciting. Not to mention frightening.
--Jason's Mother |
