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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (8486)	10/3/1999 1:01:00 AM
From: Michael Burry	Respond to of 78594

My general rule is to hold for 50%, then reduce my position back to its original size if it is still worth holding, or sell all if the position is no longer competitive with other potential positions. But what I do with quick 30-40% gains is an art, not a science. I take into account the technical characteristics of the run-up as well as potential fundamental reasons to get a picture of the durability and quality. I'm perfectly willing to buy and hold, but if there is a 30-40% run in a short time that I consider a trading gain, I'll take it. If I just bought a stock, chances are it was competing with other stocks for entry into the portfolio just two weeks ago. If it has now run 40% in two weeks, and the other potentials haven't, well then I definitely will take into account the new relative value disparity. And if a stock hits new lows, I'll usually sell it unless the dividend is particularly outsized or the valuation particularly outrageous. Mike