Separating the signal from the noise

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Livewire Markets

Investing can seem easy when markets are cruising along benignly, but when volatility picks up, it’s critical to have conviction in your holdings. Access the video below to hear Arik Star from Ellerston Global Investments explain how they know when it’s time to sell a holding.

 

  • During volatile times, it’s critical to have conviction in your holdings
  • When entering a position, it’s important to ask yourself whether you’re prepared to buy more if the price falls
  • Knowing when to sell is difficult; there are two main reasons to sell a stock
  • First, the share price has reached your estimate of value for the company. This sounds easy, but you must be honest with yourself and not be influenced by momentum
  • Secondly, when things don’t play out as expected. This might be because the thesis has changed, or you’ve simply made a mistake
  • Don’t waste time trying to “nurse a wound that may never heal.”

About Ellerston Global Investments (ASX:EGI)

Ellerston Global Investments (ASX:EGI) is a concentrated global mid/small cap portfolio based on high conviction best ideas which is benchmark independent. Providing true diversification to investor’s global equity portfolios. Find out more.


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