Back on 5/10 I re-entered MELI for what seems like the gazillionth time. My intention was to Scout Team it and perhaps hold it for Bench level. The very next day on 5/11 it dropped incredibly low and I added a huge TB: about a double my usual limit of 15% pushing the.
I had the chance to sell the TB on Friday when it pushed MELI much higher: but I didn’t. And sure enough - just like clockwork - the market took it down a bit the next day. Now it is back up and I am undecided and very aware of the old “He who hesitates is lost” side of things.
On the one hand, I think of MELI as a Flywheel Effect Company - a FEC; and thats exactly the direction where I want the roster to go. So what to do?
I am going to sell 1/2 if the oversized TB which actually increased the core allocation to a firm Bench Level player. Sure MELI is not as agile as it once was - but it appears to me that it has a few good years ahead of it. So thats that.
Note: What I have found - at least for my own personal performance, is that in dealing with TBs you have to follow the your rules for selling. As of today, the MELI Trading Block is up to a +21.7% in just 4 trading days and in this market who knows what will happen tomorrow. So I am going to try to sell right now in the AH and then let the Bench level allocation ride.
All the Best,
Ok done - sold what amounts to a full 15% TB of MELI for a 4 day gain of just over +21%.
Gonna maintain the balance as a Bench Level position. We’ll see how that all works out.
Still have a number of TBs that are positive but are still on hold. Any sign of live tomorrow and I sell them as well. Really stupid for holding them past short term excellent return results.
All the Best,
Don’t know about you, Champ…but it seems like the typical buy/hold periods have deteriorated due to the massive multiple expansion recently (especially in 2020/2021) and the subsequent contraction here in 2022.
Just feels like we are stuck in Trading Block Limbo or TBL aka Tibble.
The trouble with Tibble is our tendency to dibble and dabble with our previous ways of thinking.
“I am going to hold this for 2-3-5 years!”
(it goes up or down 30% in, like, two days)
“I have decided to take profits / kick them to the bench!”
So maybe until we feel like the macro stuff has settled, and VIX stops hustling back and forth like Pete Rose on amphetamines, we may have to just tango with Tibble.
No one could have said it better!
Now this is why I post things and have a board: Where else can you get this sort of high quality, rock solid, foundational investing guidance and insight? Why…no where - thats where!
All the Best,