Thank you a lot for sharing. I like all the points! While I slack away in my work every now and then when things go well, reading writings like yours knock me back into working hard again... lol. I find your 1st point particularly strong and hard to carry out. Just how much premium should be the line in the sand for a Sale on a high conviction big winner? Being a private investor, there is also the annoying CGT factor - big winner big tax bill when I sell it.
Ah yes Harley , I too bought into MNF at 50c and felt their run was over at $1.50 when I sold out. At the time I was very pleased with myself ... but later on and until this day .. kicking myself for getting out to early :)
Hi Huiyi, Thanks for the positive feedback. On your point about when exactly to sell - I considered writing an article on that topic but I simply couldn't because I'm still figuring it out myself! And I'm not anywhere close to mastering it. Unless the market just offers you a price that is too good to refuse I think the best you can do is understand the business as deeply as possible so you have an idea when the underlying drivers are changing. And sometimes even if you get that part right the management team will just keep delivering regardless, so understanding their level of motivation and incentives is key too. The main reason I've sold something over the years has been to invest in another idea. That has often paid off but in situations like MNF (and others) I would have been far better to just sit and do nothing!
Bob, I hope you put the proceeds into something else that went up, but selling too early after more than tripling your money is a nice problem to have!