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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (647)	12/8/1998 12:43:00 AM
From: Shane M	Respond to of 4691

Jim, >>>Except for a select few, I sell 'em. No questions asked. The way I really get into trouble is letting somebody else's dogma change my stragegy midstream. <<< Thanks for the comments. I sold two of my holdings (NITE and CREAF) this morning raising my cash level even higher - about 60% now. It's nice to lock in a gain, but it is a capital gain, and the taxman gets a big chunk. I worry that over time I will create an excessive drag on my returns, but the psychology seems to work better for me if I sell when I feel like I'm at or above a price level where I wouldn't buy a stock. On the "value" thread I remember there was a conversation about "remember why you bought the stock in the first place." Sometimes it's easy to think a value stock that we buy at $9 has transformed itself into a growth stock when it runs to $17 as did CREAF. NITE is a similar story - although there is more of a growth component - but it is at the high range of what I feel is fair value now . OTOH, Oracle (ORCL), which might be considered a Buffett stock if it weren't a tech company , is in a similar valuation dilemma right now but I've decided to hold. I told myself that I thought the stock was worth about $35 when I bought, and it's about $36 now. Holding a stock at what I think is above fair value is a new experience for me, but I'm going to give it a try and see what happens. Maybe I'll learn something about "buy and hold". <g> Maybe I won't.... Good night all, Shane