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Author: mlhav Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265  
Subject: Question for the Fools, Date: 2/14/2000 10:14 PM
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Let me preface by saying I have read nearly all of your books, most recently, RB/RM.

I am firmly convinced in your thoughts and overall longterm approach for successful and less stressful investing and ultimately building wealth are very wise.

I have firmly taken your advice and my port contains many RB/RM stocks. Cheers to me, I even owned some of them before I read the book.

My question to you, or anybody else here is: Is it necessarily bad to trade some stocks quickly for some short term gains, (I do this once in a while, approx 5% of my port) or do you folks never try this and stick with the main ports listed on the fool.

The reason I ask is that I have had some success in the past, and I have to admit, it can be fun as well as fiscally rewarding.

However, I stick to my rule of no more than 5%, and any short term gains over and above a always add to my long term holdings.

Thoughts anyone?

lester
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Author: realizer2000 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 214 of 265
Subject: Re: Question for the Fools, Date: 2/29/2000 4:00 PM
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I think that if you are selling a portion of your port just to lock in some short term gain may be unFoolish.

The best reason to sell a particular position would be if you have a better place to re-invest the money for faster growth. Another reason to sell a position would be that you are convinced that the company's stock is fully valuated at current levels and growth is minimal in the forseeable future.

You mentioned that realizing the short term gain is fiscally rewarding and that may be true. However, have you tracked the growth of the stocks you sold and noted if your decision to hold them could have been more rewarding? If the answer is "NO" over a period of a year or longer, then you are a great timer of the market. Otherwise, sticking with the great companies you bought for a longer outlook is a better strategy because it saves you the commission cost and capital gains taxes if your account is not in a tax shelter.

I am a initial investor and hope that adds value to the discussion.

Alex


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