Well, yes and no. My main objection to the MI scheme is that it involves fixed holding periods. There is absolutely no way to tell how long you should hold a stock when you buy it. For whatever it's worth, I consider this by far the best strength of MI.Why?Nobody has found another method of deciding when to sell that works wellon average, or in backtest, or in real live, or even with decent anecdotes.A fixed hold period rules out all the other reasons to sell a stock ata given time, virtually all of which either fail on average when donerepeatedly because they're based on emotion or poor pseudo-theories,or can't even be tested as a thought experiment because they are arbitrary.It also ensures that the selling date criteria are quantifiable and testable.If you're going to do something, do something that works on average in backtest.It might not work in real life, but it makes NO sense to do somethingthat didn't work on average in the past, or something that can't evenbe tested hypothetically on how it might have done in the past.I take fairly broad definitions of those tests, but hold to them rigorously.Whenever you buy something, you should write down why you bought it,what will trigger you to sell it, and what good evidence makes you thinkthat that pair of rules will make money on average through time.If you can't answer those three questions, don't buy a stock.Jim
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