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Strategies & Market Trends : e-Commerce the Next 100 Months...... -- Ignore unavailable to you. Want to Upgrade?

To: Brian Moore who wrote (357)	4/2/1998 11:10:00 PM
From: AugustWest	Read Replies (1) \| Respond to of 2882

>>I wonder if anyone has considered a criteria for removing one from the portfolio? This is an issue that hasn't come up yet, but should be addressed. I'm not sure how though. >>For starters, I would suggest dropping any issue from the portfolio if it is down 7% from the original buy. For those that have done well, let 'em run, but establish some point at which they will be removed if they begin to drop seriously. I don't think it's all a black and white issue. There can be a number of reasons that cause a stock to stall, or slip from our purchase date. One that comes to mind has 18.1 of them, but is now making its move. In fact, there may even be some that have proven quite well, but should be sold given certain market factors. >>My point is, we are not talking about buying Coke and Ford and then holding for 10 years. These are tricky companies. Some may rise like crazy, but others may fizzle at some point. To maintain a portfolio there is a need to watch it and cut losses. We shall leave no stone unturned! >>Perhaps it would be interesting to keep two portfolios. (1) The original picks. (2) A dynamic portfolio, in which some simple, set rules for money management are used to remove issues that fall, and new issues are added to maintain a list of 20. Now this sounds interesting. Perhaps even set it up and trade it on technicals. Hmmm, but then I fear we might be pulling away from the purity of this thread. Maybe not, just thoughts.