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

To: TimbaBear who wrote (18895)	3/17/2004 11:00:31 AM
From: Paul Senior	Respond to of 78498

Nice post. eom.

To: TimbaBear who wrote (18895)	3/17/2004 1:38:18 PM
From: Gulo	Respond to of 78498

It looks like you go through pretty much the same thought processes that I do, except that I am even worse at letting profits run. I tend to get out of stocks early and often leave a lot on the table. On the other hand, I am becoming more consistent in my approach. For example, if I buy a stock because its PE is well below what I think the stock deserves, I'll get out when the PE is fair again. Often, the stock continues to climb until the PE is unreasonably high. I don't regret selling early in such cases, because I don't want to own stock with an unreasonably high valuation (well, at least not in my value portfolio). There is no question that I can go back and count many times where, if I bought/sold differently, I'd be stinking rich. I think anyone can do that. I often leave even more money on the table in my non-value portfolio, but I don't have a reliable way of determining the right time to sell in a speculative stock. I usually sell when I see the stock is attracting "a lot" of attention in chat groups, but how much is "a lot"? -g

To: TimbaBear who wrote (18895)	3/18/2004 2:32:40 PM
From: MCsweet	Read Replies (3) \| Respond to of 78498

When to sell, Here's an idea about selling. Ask yourself if you didn't have a position would you be comfortable buying the security at these levels? If not, then you should think about selling at least some of your position (say perhaps 1/2). Obviously the holding on strategy has worked better in the recent market, which has been basically going straight up until the past couple of weeks. However, I think risk levels increase quite a bit when your stock goes past a fair value. Being risk averse, I tend to keep yet another Wall Street phrase in mind: pigs get fat, hogs get slaughtered MC