A number of people were very skeptical when I first said I had made 30% per year in ordinary markets. In fact some even implied that I was lying, that even Warren Buffet couldn’t do it (but he was investing billions of dollars, like piloting a battleship instead of a speedboat). That it was much better than David G, and no one had the right to claim that. And that my policy of selling positions that didn’t pan out was sacrilege, and opposed to the hold-forever principles of MF (even though I made clear that I always bought with the idea of a long term hold, and only sold when a position didn’t work out, or I lost faith in it).
This is a very ordinary market, not the dot-com craze. The S&P is up about 3.4% so far this year, which is a fairly ordinary gain. Well, my portfolio is up 30.6% already this year, as of todays close (up nine times as much as the S&P). Others on this board, following the principles that we have discussed, are up even more. And it hasn’t been magic. I’ve been transparent and given all my positions and their relative size each month, and basically told exactly what I was doing. You’ve followed along with me. It’s real. It takes some work, but you can do it too. I know there will be pullbacks and I may end up the year with more or less gain than I have now, but it can be done!
Have fun investing, all of you.
Saul
For FAQ’s and Knowledgebase
please go to Post #7972
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Thank you, Saul. I have learned more following this board since you started it than I have in all my previous years of investing combined. You have attracted some great investors who engage in great conversations about stock I probably would not have paid much attention to on my own.
Fool On,
Htownrich
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Saul,
I think I read that you had Facebook and then let it go, is that right?
Karen
And that my policy of selling positions that didn’t pan out was sacrilege
yet this is the approach of successful traders throughout time: cut your losses, let your winners run (and add to them properly). If you are 100% invested and find a better idea, where does the money come from? Sell the worst ones, the losers. Even better, sell them when the don’t work so you have the cash.
Saul, do you have a hard rule about a max loss, like 6-8%? Do you use price/volume to inform your buys?
P.
Saul, do you have a hard rule about a max loss, like 6-8%? Do you use price/volume to inform your buys?
Pete, I highly recommend reading through Saul’s FAQ. The latest version is at post 7972.
Neil
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Saul,
I am very appreciative of your work and generous sharing of your time and knowledge
Thanks
Andy
One of the more impressive aspects of this performance, IMO, is that the great majority of the companies are MF recommendations. Without screening 10,000 companies, one could achieve similar performance by just screening MF recommendations, even just RB and SA–I think.
KC
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I think I read that you had Facebook and then let it go, is that right?
Hi Karen, That’s correct, although I do keep an eye on it.
Saul
Saul, do you have a hard rule about a max loss, like 6-8%? Do you use price/volume to inform your buys?
Hi Puddinhead, Good question! It made me think. I don’t have any hard rule about this at all. But I don’t even have a mental rule, a “soft” rule. I don’t think I sell stocks because they go down. I sell because of what’s going on with the company, not with the stock. Bad news, bad earnings, loss of confidence in management, etc.
An extreme example, which I’ve mentioned before, was when UBNT, which I had really liked, had repeated disappointing quarterly results, but the CEO couldn’t answer basic questions about the companies operations on the CC but kept referring them to IR, and meanwhile he was dashing around the country trying to micro-manage his NBA basketball team, fire coaches, challenge ex-stars to 1-on-1 basketball games, etc. Much as I liked the company’s model, that was too much for me. (That doesn’t mean they won’t get it worked out in time and do well. Just not for me).
Saul
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Wow, Puddinhead, I just read Neil’s answer to your question. I would strongly echo that. There is an enormous amount of useful information, thoughts, perhaps even wisdom, in the Knowledgebase and I’d strongly urge anyone who wants to learn about what I do to read it.
Saul
For FAQ’s and Knowledgebase
please go to Post #7972
Thanks, I will check out the FAQ.
I’ve been transparent and given all my positions and their relative size each month, and basically told exactly what I was doing. You’ve followed along with me.
Saul - I’ve just spent all day reading and studying your recent missive and I learned a LOT. In that report, and I see again here - you say that you post your positions and their relative sizes each month. Could you please direct me to your latest post that outlines those positions?
With much appreciation…I’m new and learning!
judi
Hi Judi, here is Saul’s post of his end-of-June positions:
http://discussion.fool.com/monthly-summary-of-my-positions-end-o…
Hope that helps!
Neil
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Politics naturally plays no part here and only because it is directly relevant (and potentially expensive) I note in passing that Mrs. Clinton would vehemently disagree with Saul’s assertion ‘In no way is this short term trading.’!
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