Talking Stocks 2.0

[austinp]

For you guys that buy and hold stocks. When do you decide to sell underperforming stocks? How long do you wait? Some I've held for 20 yrs are lagging way behind the averages but they've been great in the past.

Also. I know it's recommended to rebalance the portfolio but don't you want to let your high performing stocks run?

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[superdog]

Originally Posted by austinp

For you guys that buy and hold stocks. When do you decide to sell underperforming stocks? How long do you wait? Some I've held for 20 yrs are lagging way behind the averages but they've been great in the past.

Also. I know it's recommended to rebalance the portfolio but don't you want to let your high performing stocks run?

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Dii on not have a good answer. But for sure I would not sell now. Have to imagine they are at a low similar to everything else.

[beshannon]

Originally Posted by austinp

For you guys that buy and hold stocks. When do you decide to sell underperforming stocks? How long do you wait? Some I've held for 20 yrs are lagging way behind the averages but they've been great in the past.

Also. I know it's recommended to rebalance the portfolio but don't you want to let your high performing stocks run?

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There are no simple answers.

Discipline over conviction is my strategy.

If a stock has underperformed it needs to go. Do not fall in love with a stock. Look at GE as the perfect example and I still know people that refuse to sell "because it has been great in the past". Dividends wont save you when the stock falls well past the annual yield.

Yes you want to let your winners run but I rebalance by taking off anything that doubles and look for other opportunities. If I sell a double, I am using profits to maintain the position and I can reinvest my original capital in something else that may be ready to move. I sold doubles in CRM and NVDA last week.

Just my opinions, you should always fact check your strategies.

[beshannon]

Originally Posted by superdog

Dii on not have a good answer. But for sure I would not sell now. Have to imagine they are at a low similar to everything else.

Just my opinion, selling now to sell is not a strategy. Selling to take profits and lock in gains could make sense. Also selling losing positions with small losses might make sense if you can either reuse the cash for other positions, or you could look to wait and buy back the same position at a lower cost thereby averaging down.

I have been averaging down by selling some winners and building larger positions. I have done this with MSFT, MA and SBUX last week

[austinp]

Do you give it a couple years of lagging or is a quicker hook the better route?GE is indeed a great example. Thank you. My question doesn't really pertain to what's going on now but more of a general strategy. I've become overweight in the popular tech stocks but I don't want to stop a winner?

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[Pantheon]

Originally Posted by austinp

Do you give it a couple years of lagging or is a quicker hook the better route?GE is indeed a great example. Thank you. My question doesn't really pertain to what's going on now but more of a general strategy. I've become overweight in the popular tech stocks but I don't want to stop a winner?

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You can dabble in some put options to hedge yourself against a dip

[beshannon]

Originally Posted by austinp

Do you give it a couple years of lagging or is a quicker hook the better route?GE is indeed a great example. Thank you. My question doesn't really pertain to what's going on now but more of a general strategy. I've become overweight in the popular tech stocks but I don't want to stop a winner?

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Well just a general example, if you are over weight in any sector, ask yourself if the risk is worth the reward? Again, when I have doubles, I take my cost out and let the profit build

Originally Posted by Pantheon

You can dabble in some put options to hedge yourself against a dip

Yes if a person understands that strategy or has good guidance.

[austinp]

Originally Posted by beshannon

Well just a general example, if you are over weight in any sector, ask yourself if the risk is worth the reward? Again, when I have doubles, I take my cost out and let the profit build







Yes if a person understands that strategy or has good guidance.

I don't know anything about put options so I stay clear of those. I barely know anything about any of this so really appreciate all the information from these threads. I did buy a little of my favorites last Friday and so far so good. Im holding off on reinvesting more to see where this thing goes.

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[beshannon]

Originally Posted by austinp

I don't know anything about put options so I stay clear of those. I barely know anything about any of this so really appreciate all the information from these threads. I did buy a little of my favorites last Friday and so far so good. Im holding off on reinvesting more to see where this thing goes.

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[healer]

As always good info here. Appreciate the time and effort you guys put in. I’ll keep checking here for some solid advice.

[smohr33]

Biggest point gain in DOW history...

[superdog]

well heck, if you are going to listen to anyone...this is the guy.

https://www.marketwatch.com/story/he...of2&yptr=yahoo

[daOnlyBG]

Originally Posted by austinp

For you guys that buy and hold stocks. When do you decide to sell underperforming stocks? How long do you wait? Some I've held for 20 yrs are lagging way behind the averages but they've been great in the past.

Actually, the answer to this question is simple, it's the methodology that's tricky.

I sell a stock when I see that going forward, the company's not likely to make sound business decisions. This involves taking a look at the company's management, spending, investing in itself, strategy, exposure to risk, etc etc.

If temporary occurrences have brought a stock's price down, then fine, the new price is either an opportunity to buy at a discount of what I think it's really worth or a warning sign that the company's headed toward the shitter.

Very often, you don't have to dig that deep to find red flags.

[Doc Savage]

Originally Posted by smohr33

Biggest point gain in DOW history...

And the biggest volatility. No way I would jump back in right now. But that's just me.

[austinp]

Originally Posted by daOnlyBG

Actually, the answer to this question is simple, it's the methodology that's tricky.



I sell a stock when I see that going forward, the company's not likely to make sound business decisions. This involves taking a look at the company's management, spending, investing in itself, strategy, exposure to risk, etc etc.



If temporary occurrences have brought a stock's price down, then fine, the new price is either an opportunity to buy at a discount of what I think it's really worth or a warning sign that the company's headed toward the shitter.



Very often, you don't have to dig that deep to find red flags.

What do you think about Disney. I've had it forever but the last few years pretty average. Had a good pop when the streaming service came out but otherwise average. The recently made a CEO change as well.

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[GB-man]

A wildly whipsawing market is exactly what you think it is. A train trying to stay on the tracks.

[smohr33]

Originally Posted by Doc Savage

And the biggest volatility. No way I would jump back in right now. But that's just me.

Glad I don’t have to “jump back in”. I was never out.

[kearez]

Huge volatility in the market, I’m guessing a day in the red tomorrow.

[Yoda_Eating_Pizza]

Mrs Yoda's friend is retiring in a few weeks. Timing couldn't be worse. Mrs Friend is the type to act on emotion. This could get ugly.

I don't actively trade, but this is an interesting thread. Thanks for starting this thread.

[Doc Savage]

Originally Posted by smohr33

Glad I don’t have to “jump back in”. I was never out.

Cool. I hope it works out for you Many people panic sold and are trying to figure out how/when to get back in.

I went 80/20 bonds/stocks in mid January. Not planning on getting back into stocks for awhile. We aren't done with this carnage, not by a long shot.

[daOnlyBG]

Originally Posted by austinp

What do you think about Disney. I've had it forever but the last few years pretty average. Had a good pop when the streaming service came out but otherwise average. The recently made a CEO change as well.

I don't know nearly enough about the entertainment/movie streaming industry enough to give you a good answer. Seems like the consensus thinks the stock is overvalued.

[Bryant Park]

Originally Posted by GB-man

A wildly whipsawing market is exactly what you think it is. A train trying to stay on the tracks.

What does this mean in practical and actionable terms please?

"All I see is someone desperate for attention", says the man with 29,000+ posts...

[walds11]

Originally Posted by Bryant Park

What does this mean in practical and actionable terms please?

"All I see is someone desperate for attention", says the man with 29,000+ posts...

BTW, a train trying to stay on the tracks is a great analogy.

Please, let’s not get this thread shut down like the other one. Let’s play nice boys.

[brandrea]

Originally Posted by austinp

For you guys that buy and hold stocks. When do you decide to sell underperforming stocks? How long do you wait? Some I've held for 20 yrs are lagging way behind the averages but they've been great in the past.

Also. I know it's recommended to rebalance the portfolio but don't you want to let your high performing stocks run?

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I’ve held some Canadian Bank and rail stocks since the 80’s

[Bryant Park]

Originally Posted by walds11

BTW, a train trying to stay on the tracks is a great analogy.

Please, let’s not get this thread shut down like the other one. Let’s play nice boys.

I am trying to understand the analogy. A market is the collective view of billions of human opinions, valuations and emotions while a train is an inanimate object.

A market in turmoil (volatile) represents opportunity as opinions are diverse as opposed to an out of control train where there is no potential upside. (Metaphorically it does offer a chance to short the trains brake manufacturer, operator, and insurer while suggesting a potential buying opportunity for a RR competitor, and the ability to look into potential production challenges caused by the delay in delivering the trains cargo).

My 2 cents but trying to understand while not digressing to name calling or the use of profanity.

[beshannon]

Originally Posted by austinp

What do you think about Disney. I've had it forever but the last few years pretty average. Had a good pop when the streaming service came out but otherwise average. The recently made a CEO change as well.

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I believe at this level it could be a good long term hold.

They still have exposure to COVID-19, travel and anything related to crowds at their properties or theaters. I believe that their streaming service is over valued.

https://www.investors.com/research/d...stock-buy-now/

It is not on my list at this time

[beshannon]

Originally Posted by smohr33

Biggest point gain in DOW history...

Originally Posted by Doc Savage

And the biggest volatility. No way I would jump back in right now. But that's just me.

Originally Posted by kearez

Huge volatility in the market, I’m guessing a day in the red tomorrow.

Too much too quickly.

Although the oversold reading was big it was not extreme. If we retest the low, I am not sure it holds.

[GB-man]

Originally Posted by Bryant Park

What does this mean in practical and actionable terms please?

"All I see is someone desperate for attention", says the man with 29,000+ posts...

John I don’t have any actionable financial advice for strangers on a watch forum.

Seeing as you’re apparently a hedge fund manager I can see why this sort of market is very profitable for you but for many of us we are just looking for ways to protect capital. We are not professionals.

Coming in after close to call out random strangers on TRF about an opinion on market direction seems like an odd move for someone in your profession.

[Bryant Park]

Originally Posted by GB-man

A wildly whipsawing market is exactly what you think it is. A train trying to stay on the tracks.

So what does this mean? Hoping to gain some insight.

[GB-man]

Originally Posted by Bryant Park

So what does this mean?

To me, and again I am not a professional, it means that when I see large swings day to day it points to uncertainty in the markets and a lack of confidence which can go downhill very fast. A dangerous place for casual investors to dabble unless they have a very strong stomach or the professional guidance needed to deploy more complex strategies.