SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dale Baker who wrote (22326)10/22/2005 1:52:56 PM
From: Paul Senior  Read Replies (1) of 78594
 
I buy and sell for a combination of maybe rational and emotional reasons, so my behavior is not necessarily consistent.

Each situation is different. Sometimes I try to put myself in the position of an owner: Would an owner sell because of a bad quarter? Or as a stockholder: Where will this stock be, or could it be, in 12-24 months?

I’m diversified, and my positions are relatively very small. This enables me to sometimes consider each stock as what I perceive a rich person might. Bad news and/or a stock drop in an individual position isn’t going to affect me that much. (Conversely of course, neither is good news or a stock rise in any particular stock)
I feel I don't need to rush performance. Since most companies’ fortunes are cyclical – not too many have continuous good times – I sometimes feel I can afford to live with what I have and wait for the better times to come around. Sometimes I do panic or lose patience and toss out the stock.

I agree with Spekulatius – the difficulty is getting back in if one sell on bad news. Even if I sell and put the stock on my watch list, it seems I don’t focus on it as a buy if/as it drifts lower – my observation of it only confirms my judgment to have sold it. If the stock recovers, sometimes it’s so gradual, I don’t notice it – or so abrupt I figure I’ve missed my opportunity for getting back in. (And I am one who will sometimes buy back at a higher price than what I sold it for.)

I'm often willing to buy into a bad situation which I suspect might be reversed. I find that value stocks (as I figure value) commonly get even cheaper, so I want to be prepared for this by anticipating that I might be adding shares if the stock drops.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News