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

To: bruwin who wrote (2364)	10/1/2012 1:41:38 PM
From: The Ox	1 Recommendation Respond to of 4719

I would say Yes, exactly. 20% or 25% on the downside is where I would think we should start. I would have no problem setting the bar very low, even 33% downside, so that the odds of triggering an automatic buy would be small. I think reinvesting dividends when a stock falls significantly is a good approach. As to taking profits on the upside, I think we should have a thorough discussion and then a vote. My reaction is not to sell stocks, except at the yearly review. But I would understand selling 10% of a position if it reaches a 75% or 100% gain threshold. If we create a profit taking model, I suggest it also triggers a resetting of the auto-buy in for that same stock. This way, there's a chance we could reaccumulate some of the sold shares at a lower price.