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

To: E_K_S who wrote (3708)	6/28/2014 1:37:35 PM
From: bruwin	Respond to of 4719

I thought that it was possibly your GN Calculator that produced so many votes from you !! {:-)

To: E_K_S who wrote (3708)	6/29/2014 9:35:27 AM
From: The Ox	Read Replies (1) \| Respond to of 4719

It's tough to figure out where we would want to trim, as we only know past performance vs. the future. Using earnings estimates as a guide helps for the more traditionally functioning companies but doesn't do as much for us for companies like APA and SLW which are in large part priced for the underlying price of oil or silver. From what I can see, I think DIS is the most overpriced "traditional" stock in our portfolio, even though it is one of the more "beloved" companies by the street. It is also one of our top gainers, so if we were to sell 50% of one company and use the proceed to buy a new candidate, DIS would be the one I would suggest we sell. Simply for the purpose of discussion, I'd go so far as to say instead of selling 50% of DIS, I'd suggest selling only the gains (currently $3600) and adding them to our cash ($1400) which would give us $5K to buy a new stock. Since that was the starting price of our original purchases, I like the symmetry of the move. AAUKY is very interesting and probably an excellent buy but my reservation with them is based on my concern for adding another commodity driven stock to the portfolio. VOD has other issues but they aren't at the mercy of global commodity traders, so to speak. We have 6 weeks to make our choices. I sure hope that we get more "fundamental value" analysis on the companies that are being considered for removal or addition. I can easily say let's dump our largest loser SLW and take the cash and buy one of the new candidates, as that would be the most in line with our original portfolio guidelines. Similarly, I could see us not making any moves and using the cash available to buy more SLW, as it's the laggard and buying more at a lower price was what we did with AAPL last year. That worked out well. I've almost always stayed on the side of let your winners run and trim your losers when they show a questionable future. At the same time, it may make sense to sell half of one of our winners to add a solid candidate. Lastly, we are only approaching the 2 year mark of our 5 year "challenge". We need not be hasty with any of our moves, as time may be on the side of the laggards.....