Q: I would like to add my 2 cents worth of info towards Tamara's post, in part to add something to these boards in my way of paying it forward for the $$'s I have made off of investments I learned about from other board members.
I have studied Warren a tiny bit and some of the other big gurus a lot more who do similar type investing to Warren B..
What I have read and 1 Guru recently told me was that Warren for example, does in fact sell routinely.
He routinely sells part of his holdings when he determines they have become over valued (above his calculated Intrinsic Value). Not the complete holding but just a portion of his really big holdings, or maybe all of a smaller holding. Meaning he takes a profit. He then may repurchase some shares of the same business 6 months, 1, 2, 3, 5... years later when the stock price has dropped to being on sale again. Repeat and spin. He even does this with the ~ 6 holdings that make up ~70% of his portfolio.
They big guys/gals routinely make 100%++ profits this way.
Said another way, he practices buy low sell high.
These big guys/gals will wait years watching their Watch List all waiting for one on the list to go deeply on sale so as to buy more of or to start a new position. They try to not over pay. So even if they get it wrong they still often do not loose $$$$ or very little because they bought at such a low price. A big important part is what the company is doing not what the market or media is doing/ saying.
I have studied Warren a tiny bit and some of the other big gurus a lot more who do similar type investing to Warren B..
What I have read and 1 Guru recently told me was that Warren for example, does in fact sell routinely.
He routinely sells part of his holdings when he determines they have become over valued (above his calculated Intrinsic Value). Not the complete holding but just a portion of his really big holdings, or maybe all of a smaller holding. Meaning he takes a profit. He then may repurchase some shares of the same business 6 months, 1, 2, 3, 5... years later when the stock price has dropped to being on sale again. Repeat and spin. He even does this with the ~ 6 holdings that make up ~70% of his portfolio.
They big guys/gals routinely make 100%++ profits this way.
Said another way, he practices buy low sell high.
These big guys/gals will wait years watching their Watch List all waiting for one on the list to go deeply on sale so as to buy more of or to start a new position. They try to not over pay. So even if they get it wrong they still often do not loose $$$$ or very little because they bought at such a low price. A big important part is what the company is doing not what the market or media is doing/ saying.