Re: the discussion a few posts ago about selling.
Agreed that we are better buyers than sellers, but let's not adopt strictures that don't apply. Most of us are not here because we are managing third-party money, but because we are running personal accounts. So applying classic rules of portfolio management may not be necessary, and may not even be appropriate.
The Rules say diversify, and if a position grows to too large a proportion of the portfolio, sell. My concern is that The Rules may in this case may be a disguised way of saying, sell your winners and keep your losers.
Investors whose wealth is mainly in their house, their pension and other assets need to take a broader view, IMO. If you've put a lot of money on one biotech and it's running, don't you want to look at it as a proportion of your total portfolio - house, cars, stamp collection - rather than of just the stock piece of your assets? I say this with particular respect to those of you who bet on Sepracor, Elan and various other plays that took more than the average in the way of cojones.
There aren't many ways I can contribute publicly to the thread, so it's good to pitch in where possible. I second whoever it was who thanked Peter and the regulars for one of the finest forums in the industry.
Best,
Itsthesciencestupid |
