Maybe not selling over short periods, but selling:
"... endeavor to buy stocks when they are quoted below fair value and sell them when they rise above such value" (p.95)
changing the ratio of stocks to bonds. More bonds and stock sales when stock prices are high and the reverse when there's more value to stocks (low stock prices).
Graham never said, afaik, that a person would get rich following his (Graham's) ideas for investing.
Graham got sort of roped into holding on to Geico, and that of course made a big difference to his overall performance as he and you said.
On this thread over the past many years, I have said that I am interested in what works for most people.
Not sure Wertheim's method is applicable to many. Maybe easier to hold on to large positions -- large $ gains - when you're already a multi-millionaire and also having a substantial business. Was it luck, savvy, skill, that he was able to meet the owner and buy in to Heico, and stubborness, astuteness, something that let him hold on to the stock?
Otoh, maybe can't duplicate Wertheim's technique looking for patents/intellectual resources, but as Fairhome Fund's Bruce Berkowitz investor said, all you need is one stock to become very wealthy. GE, BP now? (Werteim recent buys) |
