10-01-2016, 05:06 PM
Hi Amos, thanks for asking this question. This is also interesting question for me and hope we get some answers from experienced investors here 
After reading so many DGI articles, i wondered why they do not mention valuation more often. I think it is even more important than dividends. For long term investors small price changes do not matter, but big ones definitely do.
I bought CMI for $83 in Jan 2016 and I was wondering if I should sell in Jun with cca 200% XIRR (currently my XIRR is 90% on CMI).
I bought STX for $27 in April and some more for $21 two weeks later. Currently my XIRR is cca 230% and I am wondering if I should sell.
I don't mind not selling at the moment, but for a long term I hope I will learn when to sell. Most DGI investors sell when dividend is cut, but I really do not like idea selling lower than cost basis. I guess I need to come up with my own valuation and sell if there is a big difference?
After reading so many DGI articles, i wondered why they do not mention valuation more often. I think it is even more important than dividends. For long term investors small price changes do not matter, but big ones definitely do.
I bought CMI for $83 in Jan 2016 and I was wondering if I should sell in Jun with cca 200% XIRR (currently my XIRR is 90% on CMI).
I bought STX for $27 in April and some more for $21 two weeks later. Currently my XIRR is cca 230% and I am wondering if I should sell.
I don't mind not selling at the moment, but for a long term I hope I will learn when to sell. Most DGI investors sell when dividend is cut, but I really do not like idea selling lower than cost basis. I guess I need to come up with my own valuation and sell if there is a big difference?