08-17-2019, 10:31 PM
(08-17-2019, 08:54 PM)fenders53 Wrote: I am good with most of that until you say NEVER SELL. That means you never ever make a bad decision. Do you really believe they Ray? You are either think you are the most amazing investor to ever walk the earth, or a little bit delusional and locked into a strategy. I refer you back to Buffet and Munger. "Don't lose money". I know that quote is tongue in cheek, so I interpret it to mean "don't lose money when you should know better". There is patience, and there is stubbornly riding a dumpster fire into the ground and losing it all because you are too stubborn to admit you made a mistake. Patience doesn't cure all bad decisions.
No, I made my fair share of mistakes and some of them were selling what I thought I should sell--those sells cost me a lot. That's one reason why I don't like selling. If I buy a solid company, and it pays me a nice growing dividend--even if it becomes overpriced--why should I sell? I see no issues keeping the investment and collecting the dividend. I did sell Kontoor Brands recently, and it cost me some--I just didn't feel like following the stock--doing the research--so I sold it. I believe I bought ALB with the proceeds. I don't buy any crazy-like companies--I don't speculate--I don't gamble with my earned dollars. MKL has been dead money for me for a while--I can sell and try to do better but then I'd have to pay long-term capital gains and do research to buy something else--I don't know maybe Markel will not do anything maybe it'll start doing better. I'd rather just let it sit there--I don't believe I'll lose the dollars and in time,imho, it's a really good company that will grow in my account--so why sell? I put in the leg work a long time ago, kept tabs on it, it hit some speed bumps and I'm ok if it just sits there--in fact I thought about buying it not too long ago when it went below 1k--I didn't though--bought TD instead.
MKL
CELG
AMZN
BRK.b
SHOP
are my only stocks out of 57 that don't pay a dividend and I can't think of selling any of them at the moment, even SHOP....Why? Cause it's up a few hundred percent? Sell, pay long term capital gain taxes..then what? What am I going to buy? I believe in the company and if it drops 300% I''l buy more and wait. I've been reading articles saying sell SHOP 200 plus percent ago. I know it's way way overpriced but I'm willing to let it ride out.
OHI and SBRA are two others that I think....think about selling but I'm holding for now--a lot of pressure on SNF's but I'm holding.
AAPL? QCOM? BNS? CM? CMI? V? XOM? CB? O? AFL? MO? KMI? JNJ? DIS? I can't sell these...what am I going to do? Do I sell my winners? Do I sell my losers? But I tend to be a value investor and my losers seem to linger, what should I do? Sell them and cut my losses? Maybe I should sell ABBV because of the debt load? Is it going to go bankrupt? Cut it's dividend?
A recession? Maybe I should sell and prep for it? Why? I can't do that....What should I sell? How long should I wait?
The point is that I have a nice snowball rolling and I don't want to disrupt it by selling something that I might regret selling. SHOP, OHI and SBRA can all go to zero and it wouldn't kill me financially, so why sell them at the moment? I'm going to let them ride. For the record, I never bought SBRA....they bought something else I owned--I never would have bought them--I should have sold them when they acquired the company I owned but didn't. I think that's why I sold Kontoor so quickly. So, I do sell, but rarely as I said in the other post.
So, I did sell one stock this year--kontoor. It wouldn't have killed me to just keep it.
But going back to buying a quality company at a reasonable price, looking for that dividend. As a long term investor, why would I want to sell that investment? Why? Cause I think I can do better? How about I collect those dividends and buy more stock of a quality company at a reasonable price.
Wash, rinse and repeat.
And yes...WB said you only need to know two rules for investing
Rule #1 Don't lose money
Rule #2 Don't forget Rule #1