No. of Recommendations: 2
Hi Jim

You have done extremely well given the constraints (some imposed by the program and some self imposed regarding stock selection) IMO. Give it 3 more years and you will be soundly beating the market, I am sure.

The only purchase I do not agree with is NFLX because it is not MUE on the basis of the argument that you have the right to add to it since you started it as a MUE. It dilutes the beautiful idea behind MUE that has succeeded way beyond the dedicated services to this philosophy.

On the sell part, despite being a very slow seller myself, my own track record is checkered here. But I feel that the only aspect that makes investing different from gambling is using our minds. It is ok to build a sell process and keep refining upon it. The best example I have found on it is IV. Their scorecard returns are not good but when all sells are considered rolled into subsequent buys their results are phenomenal (> 20% annualized for rolling 3 years) and this is despite the fact that I showed their sells have been wrong by an average of 11% which is huge and yet it is a process that works very well.

One of the things that I have realized over time is it is very important to feel comfortable with the portfolio. I have learnt to be comfortable with long holds but when a thesis becomes anti thesis regardless of the stock prices it makes no sense to hold it and judge it later for reasons other than the thesis itself. The only reason one needs to track it to see if the sell decision was right is to check strictly with respect to the original business thesis.

And finally, it is important to realize that in a bull market every sell decision will appear wrong and vice versa. In your case things got compounded by the fact that the money you rolled into you other investments did not play out so far but this should not dent the process of selling and rolling over, only refine it. My 2 cents...

Anurag
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