Ed, I think that as with most of my posts, you take one point out of context, and suggest that it was my only point, while ignoring the general context of my post and the preceding posts.
Please do not take offense at this. That is not the point.
I never said once that my portfolio has been subject to these swings (which is consistent with my absolute inexperience with margin calls). I said that I base my use of margin on worst case scenarios, which in my mind is a 40% drop in a very short period of time.
I do not make a practice of hedging my portfolio to the extent that you apparently do. I see the downside as a temporary problem (given the companies that I buy), and choose to not allow for Uncle Sam to profit on short term blips in my accounts. My hedging activities are principally related to keeping margin in-check, and an acceptable level of debt to marginable assets. I divert the bulk of my options investments in long-term bullish prospects, and don't tend to sweat the nickels and dimes (of temporary corrections).
I don't understand why you find it necessary to pick a fight with me on almost every GD post. I guess if this is going to be modus operandi for you, at the very least I would ask that you try to keep my points in context.
Under all circumstances, we owe it to the thread to remain civil and not throw grenades in public. My philosophy is different than yours. Please accept it as I do for you.
Thank you.
Regards,
LoF |
