Mike: Thanks.
One of Warren Buffett's ideas is that you only buy a stock that you plan to hold "forever".
The most fundamental idea in gorilla gaming is that you choose a gorilla and hang on.
But both have severe tests, sharp gains in prices, and sharp losses in prices.
What to do then?
This then becomes very individual.
But as you say, until you sell, there is no loss.
(Nor is there a gain)
But the major advantage of choosing stocks carefully which you plan to hold for at least 3 years is that time is the best ally available - again if not risking a fire sale.
Yes, the last 6 months have been tough in some tech stocks.
But what about the next 6 months? No one knows. But what seems likely?
Which gorilla is about to bite the dust - Cisco, Qualcomm or x?
Sure G&K carry risks and some of the best based on fundamental analysis are down, but are they out? If not, should we be out?
Keep thinking back to the roller coaster Cisco ride over the last 10 years. In that case the best time to sell would have been never. Did I do that, no. Did I learn something from that, yes. Cisco was a rare case and still is, but isn't that what we are about here - trying to find companies with similar potential - and hanging on to the extent practical in our own individual situation? Unless and until the gorilla is at least in danger of serious wounds? Isn't that the essence of the Gorilla Game?
Again, if sales for personal reasons are necessary because no nest egg is available, there is no choice.
If a super opportunity is there and a sale is required to participate, then that is a practical choice.
But otherwise, why?
If necessary to sleep at night, so be it.
To each his/her own.
But isn't a long term buy and hold approach bed rock gorilla gaming?
Best.
Cha2 |
