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

To: dolan who wrote (23565)	3/18/2006 1:02:34 PM
From: E_K_S	Respond to of 78748

Hi Dolan - Yes, it's human nature but you can not be greedy either. I have left a lot of money on the table but I also have provided myself with the opportunity to invest in new more profitable "value" propositions. I try to scale back or peel off a portion of my gains over time. Usually I will take 1/3 off the table if the equity has become fully valued and the growth prospects have slowed. Also, this allows me to get back my initial investment especially if it's a multi-bagger. One example is with GLW (Corning). I finally sold 10% of my original shares that I acquired between $3.50-$5.00/share in 2003. The stock is overvalued at $26 but I believe the growth prospects are still very good. The difficult decision is to step up and buy more shares after a stock has had a significant rise. Once investors discover the hidden value and/or management has shown that they have started to turn the company around, the stock usually increase back to fair value (or higher). Sometimes stocks over shoot their fair value mark and the prudent strategy is to sell your shares. You will never book a profit until you sell. Trading a stock can be part of your investment style but you must be disciplined and have an exit strategy. I have been much more successful selling a portion of my shares and moving on to something new. EKS