That's a limitation of the rule. But my logic is
1) It removes my emotion and greed from the sell
2) I should be happy with 50%/year, let alone months
3) I am not selling everthing - I still own half the
number of shares, which is 75% of the original
monetary investment.
4) It reduces the volatility of the portfolio as the
the portfolio becomes less top-heavy.
Personally, I feel very satisfied knowing that I've
got the gain, a loss is unlikely, and there is still
money working in the stock.
BTW, I am really interested in HWP, and am looking to
buy next time it touches 60-61. I see a business at
near fair value, but with a proven history of growth,
a diverse base, judicious use of debt, 20% ROE, and
a stock that has done nothing for about a year. PE is
20, but I would be looking at it as a Buffett-like
long-term hold. Any opinions?
Good Investing,
Mike |
