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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (8731)10/22/1999 3:25:00 PM
From: jeffbas  Read Replies (1) of 78659
 
Jurgis, I have taken so many round trips that I am dizzy. I would say that scaling out is even more important than scaling in. If you have done your homework and know what you are buying there isn't much reason not to start with a full position. Admittedly homework takes time and you might want to scale in as you do more homework, talk with mgmt, and grow more comfortable.

On the sell side the stock no longer meets your buy criteria so there is no reason to hold any except you think it may not have reached your sell target, or may get even more overpriced. That's inherently a much tougher call and scaling out is something I am coming to believe is the best strategy. Of course, I like a cash tender offer best of all <ggg>.
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