I don’t do Saul style portfolio reviews but on occasion I discuss how mine is doing. Prompted by an article about Buffett’s 2017 returns I did mull over mine at the NPI board.
http://discussion.fool.com/buffett-review-32927731.aspx
Denny Schlesinger
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I’ve been fighting with myself not to sell the BEAT I bought this September at $31.78
I"m curious, Denny… what are your reasons for not selling versus wanting to sell?
I"m curious, Denny… what are your reasons for not selling versus wanting to sell?
Good question.
Not wanting to sell is easy, it is the expectation that despite the current poor performance of the stock the company and the stock are winners longer term. Or as Peter Lynch might say, the story is intact. As I recall, NVO’s price drop in the second half of 2016 was based on insulin pricing pressure in the USA and some drugs coming off patent. There were also some management changes. These are all short term issues that just serve up the fat pitch.
Wanting to sell is mostly mental FUD. Something else is going up and I’m missing the boat. What if the stock does not go up? My portfolio’s performance is being hurt, etc., etc., etc.
The problem, of course, is that you never know if you are right or wrong util it’s too late. A loss is worse than a missed opportunity so wanting to sell is a powerful force. Any time you read the words “hope” or “wish” or “luck,” that’s gambling, not investing. Not wanting to sell means that you know your investment, and trust your investment.
I hope that helps,
Denny Schlesinger
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