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 : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (2374)	10/2/2012 9:33:09 AM
From: The Ox	Read Replies (1) \| Respond to of 4719

I think using 50% of the cash on hand to buy each of the 2 laggards (in both portfolios), at the 6 month mark, seems like an excellent way of treating both portfolios the same. My only question or thought on this is maybe we should wait a little longer, so there is more cash to put to use. Say 9 months, right before the annual review? I don't think we should limit the buying to "stocks we want to hold" because, in principle, we want to hold all of them for the long term!! The initial concept was that we were going to hold all of them for many years. We gave ourselves the option to adjust the portfolio based on adjustments made to WB's but the basic principle was long term investing, not trading out of stock that happened to underperform. Since the main focus was for the long term, I think having the automatic purchases at a 6 month or 9 month time frame, using whatever cash is on hand at the time, is an excellent way for putting cash to use. Lastly, the amount of cash will be relatively small. So if we happen to buy a stock that we then sell, the few shares aren't going to make a huge difference. IMO TO