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

To: Madharry who wrote (39606)	10/11/2010 3:27:46 PM
From: Dan Meleney	Respond to of 78670

When to sell? When something significant changes, I refresh due diligence and ask myself, "If I didn't own it now, would I now buy it?" If I wouldn't, then I sell it. Changes I look for: o price change o earnings surprises o M&A o market/product changes (e.g. IPad impact on AAPL, DELL, ...) I don't look at technical considerations (not that I'd know one if I stepped in it) Too big...hmmm...if AAPL keeps growing I'll slice off a piece, but it still has nice valuation. I wouldn't want it over 20% of my portfolio. I hope this is a problem soon. Taxes are a minor consideration for me usually.

To: Madharry who wrote (39606)	10/11/2010 8:21:55 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78670

Madharry, fwiw, I generally sell: 1) "When a hoped for event just doesn't materialize". When a hoped for event does materialize, and the stock doesn't move after 1 or 2 quarters have elapsed. 2) "when I become disappointed with the company's prospects" 3) "when I become disappointed with the company's management" 4) When a stock hasn't moved and business or book value doesn't seem to have improved after a 2-year holding. 5. When a net-net hasn't shown stock gain after about a two year holding. (I am reducing my holding period from 3 years.) 6. When I am betting on a large-scale organizational change and I don't see any business improvement after three years or stock improvement within five. 6. When I am betting on the jockey (CEO) and he (or she) leaves or makes big stock sales. 7. When I am betting on a guru (value maven), and the guru sells. I'll point out that for me, there are several things that are sell signals for me as regards the market. This doesn't mean though that I necessarily will reduce stock positions or sell out individual positions. I will sell based on fear. Not sure what events drive that though. Usually some sudden news event or a long drawn-out market drop.

To: Madharry who wrote (39606)	10/11/2010 10:27:45 PM
From: Grantcw	1 Recommendation Respond to of 78670

Madharry, I pretty much only have two rules to sell: 1) I feel the stock is not as undervalued as another stock, so I sell one stock to buy another. Or 2) I feel the stock market has reached a peak and so I trim some shares of various holdings which I feel are less undervalued than others. That's pretty much it. If a stock has gotten to be too big a part of my portfolio, then it generally falls into rule #1 above anyway and I rotate shares to another stock. thanks, cwillyg