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Hi aleax,

At DV we tend to buy (and sell) in stages. One reason is so we don't just jump in with all of our capital at once, but rather we buy shares over time at, hopefully, better price points. The second and perhaps most important reason is to attempt to offset the pop we see when trading volume spikes for a micro cap company. I don't think we'd be happy with the outcome if I recommended that everyone dump a 10% position in a company all at once. So, buying and selling in stages attempts to mitigate that. Lastly, I am notorious for selling stocks too soon. It's largely the result of my conservative valuation modeling. So, with DV, I like to take some stock off of the table when my valuation model tells me to and then hang on to some remaining shares to sell, hopefully, 10% or so higher.

You are also correct that it could be a decision of holding additional cash versus holding stock that is likely to at least do better than the return on cash. In this particular case, that didn't factor into my decision.

I hope that helps.

Best,
Ron
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