Sergio H, I can appreciate The Ox’s (TO’s) concerns and observations regarding ....
(a) the starting point of the portfolio
(b) the concept of holding long term, no matter what
(c) the end date/finalization of the portfolio
.... and maybe this is something we need to think about and decide on.
The way I see it, the SI Portfolio and the Buffett Portfolio face the same Market conditions. So it’s possibly the nature of the business, the market that the company is in, etc..., that will determine how that company performs.
If there’s a major crisis in the stock market(s) then most, if not all, companies will very likely suffer and their prices would probably decline. That would probably not be the fault of the company itself, but just the “human reaction” that takes place in such a situation where the bears take control.
With regard to when the portfolio is finalized, my suggestion is that we run it for a 12 month period. If Buffett sells any of the stocks in his portfolio in that time, then SI can do the same, in the same number, based on a vote of the contributing members as to what gets sold and bought. If Buffett hasn’t sold during the 12 months then SI cannot sell.
If a Buffett stock is removed from the market then SI must remove a stock by vote. If an SI stock is removed from the market then a new stock can be voted on .... and entered at its current price ??
With regard to the ‘starting point’, I’d refer back to the fact that Buffett and SI are facing the same market conditions when we press the start button.
The other thing is that Buffett looks for Durable Competitive Advantage (DCA), .... for good reason. So there’s nothing stopping SI members from choosing companies that fit that sort of criteria. One could ask the question, does Buffett’s holdings include ALL the US companies that exhibit DCA ?
I look forward to your reply and suggestions ..... |
