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: Paul Senior who wrote (49665)	10/6/2012 12:36:43 PM
From: E_K_S	2 Recommendations Respond to of 78750

Hi Paul - I have found your posts helpful when you scale a position down and/or close out a position. For me, it is one of the most difficult parts in investing is "When to Sell". For the last year, I have been trying to provide the thread my reason(s) for scaling down a position and/or closing out a position especially if I find that the "value" proposition is no longer there. I have been wrong and will continue to be wrong on my sells but when I see others selling and evaluate their reasons (not always a value consideration), it gets me thinking on my reasons to sell. Many of my sales are done for cost basis adjustment reasons. I generally make several buys (usually three or more over several months). I will sell off my high priced shares and deploy that money into other value propositions. I post those sales too with the comment that I am selling my high priced shares. In fact, if you search the thread for "high priced shares", many of my sales are for this very reason. I do lot based accounting and as a result keep many (if not all) of my long term capital gains in the portfolio. I only harvest those capital gains to offset capital losses. One of the things I pay attention to on the "sell" posts if there are specific sectors being sold and the reasons for selling (dividend yield too low, PE at higher end, etc). Sometimes it is a flag for me to evaluate the companies I own in that sector too. EKS

To: Paul Senior who wrote (49665)	10/6/2012 9:48:39 PM
From: Sergio H	2 Recommendations Read Replies (2) \| Respond to of 78750

In all fairness, you have a lot of losers because you have a lot of different stocks in your portfolio. That's how you choose to play it, no critisism on that, although if you buy so many stocks it might be more efficient to just buy ETFs or mutual funds. But since you play so many stocks, it would be a great opportunity to take a look at the results and learn something. Wouldn't it be interesting and educational to look at the stocks you sell to see how your long time tested value theories held up? For example, did the metrics at the time of sale decline or did they still indicate value? Wouldn't it be of interest to apply the same analyses to your winners? There is always something to learn, isn't there?