Sorry Saul, in this months results you mention that you bought and sold NVDA within a few days and bought and sold WIX within the month (in an earlier month).
Any feedback on what your buy and sell triggers were? If not trading signals, there must have been adverse news or large price movement to warrant selling as I thought you’re general strategy was buy and hold (until either investment case changes or perhaps valuation becomes way too unrealistic).
I can’t speak for Saul, but I know I will do the same thing at times. I’ll add a small position to my portfolio of something new. My emotional response to having it in my portfolio makes me aware of my own doubts. I’m suddenly motivated to think about it more carefully and then I act accordingly.
Saul posted about most of these trades right when he was making them. With NVDA, he took a small position, but when other companies that he had more confidence in, got cheaper in the subsequent days, I think he felt his capital was best deployed elsewhere. He didn’t suggest that NVDA was suddenly a worse investment than it was a few days earlier, he just indicated that other, higher confidence companies were going on sale and best to add to them
This thread, check out the three or four posts from Saul where he indicates why he bought, and why he sold when he did:
https://discussion.fool.com/nvidia-okay-i-broke-down-and-bought-…
in this months results you mention that you bought and sold NVDA within a few days and bought and sold WIX within the month (in an earlier month). Any feedback on what your buy and sell triggers were? If not trading signals, there must have been adverse news or large price movement to warrant selling as I thought you’re general strategy was buy and hold (until either investment case changes or perhaps valuation becomes way too unrealistic).
Hi duncs, you needed to read down to my general principles at the end:
Finishing up. When I take a regular position in a stock, it’s always with the idea of holding it indefinitely, or as long as circumstances seem appropriate, and never with a price goal or with the idea of trying to make a few points and selling. I do, of course, eventually exit. Sometimes it’s after months, and sometimes after years, but I’m talking about what my intention is when I buy.
I do sometimes take a tiny position in a company to put it on my radar and get me to learn more about it. I’m not trying to trade it and make money on it, I’m just trying to decide if I want to keep it long term. If I do try out a stock in a small position and later decide that it’s not what I want, I sell it without hesitation, and I really don’t care whether I gain a dollar or lose one. I just sell out to put the money somewhere better. If I decide to keep it, I add to my position and build it into a regular position.
And in my 4 month review I made it clear that this was a tiny position:
I tried out a little (under 1%) position in Nvidia again, but didn’t hold it for more than two days, I think it was.
I’ve discussed my feelings about Nvidia often. You’ll just have to go back through my posts. As for “buying and calling triggers” and “trading triggers”, I don’t even know what that means (thank goodness).
Best,
Saul
Thanks for further detail. Reading your August & September updates were my introduction to this forum and there is a LOT of content, of which I have only started to scratch the surface.
It’s good to now understand that these decisions are more related to allocating a finite amount of capital, rather than short-term gains which didn’t seem to fit into your general philosophy as per the knowledgebase.