Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: E_K_S who wrote (37906)	5/15/2010 8:25:28 PM
From: Grommit	Read Replies (2) \| Respond to of 78478

"Selling strategies continue to be difficult for me. Do you peel off shares and scale out of a position or just move on with an out right sale?" Tough for all of us. You may have heard this before from someplace... a. I try to ask myself, if I did not already own the stock, would I buy it? (although tax implications may impact the answer, there have been a few times where I avoided a gain to save taxes, only to see the gain evaporate. Stupid!) b. If I cannot decide to sell or not, sell 1/2 (or 1/3). At least you will be 1/2 right. c. I sell stocks that have gone up easier than selling those that have dropped. Mainly because I believe in the concept that undervalued stocks will recover. d. Never look back. But I seem to usually sell when something better comes along. For example I have been frequently peeling off shares of GOV to buy other reits that have lower PE and therefore higher upside potential (more price safety). OHI and MPW come to mind. Also have been selling AHT-A and FR-K to buy OHI-D, and giving up a bit of yield for a lot of safety. Here's a puzzle. Sold my RIG in january, but kept DO. Kicking myself for not selling DO on the rig sinking. But not really kicking myself because it made no sense to sell because they claimed there was no oil leak. Unsure what to do now. FYI Bought more NXY on friday. grommit

To: E_K_S who wrote (37906)	5/15/2010 10:07:28 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78478

On Selling: Yes, I almost always make partial sales rather than all-at-once exits --- with stocks where I have more than exploratory positions. FMX, a few sales over several years, and finally out after three more sales this year. I made nine sales of ABT over three months this year before completely closing out my holdings. GOV about nine sales over two months. Otoh though, there were three sales of RIG over only about three days before completely exiting that one. -------------------------- "LT debt s/b no more than 3x revenues (my new Buffet rule)" I don't know this rule. Do you have a referenced source where it's discussed further?