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

To: Madharry who wrote (43379)	7/18/2011 9:19:34 AM
From: E_K_S	Read Replies (2) \| Respond to of 78462

Hi Madharry - Re: Balck Swan positive holding - So you caught one, when do you sell? I think you summarized it well. So if you eventually caught the long shot "positive" Black Swan, when do you sell? AAPL is one that comes to mind. If you were lucky enough to pick up those $7.00 cheap shares in the late 90's, would you still be holding them now? One of my all time "positive" Black Swan's that got away was Dry Ships (DRY). I rode the stock from $9/share to $130/share and then back down to where is trades now at $4.00/share. I did trade a few shares during that period to more than break even but it is one thing catching the elusive "positive" Black Swan stock and another selling it at (or near) it's high. I guess that is why I try to wrap a "value" framework around each equity I buy. It provides me a quantitative measure for an entry point as well as an over value price range to use as an exit point. If I am correct, I should be able to capture a significant portion of the "meat" in the trade w/o suffering the consequences of a "negative" Black Swan. EKS