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A cluster of holdings expected to make $1bn a year in profits suddenly switched to an outlook of very likely bankruptcy...
Yet Mr Market was still offering not-that-bad prices, like a reverse margin of safety.
It's a simple Rule #1 decision to sell...
[i]t just doesn't ever make sense to own any business with that big a downside relative to current price.

This emergency brings to mind that the prospects of any business, industry, sector or economy depends upon its macroscopic milieu. Yet in normal times value investors, including myself, typically tend to eschew the macrosphere, on the historically justifiable trust that, for individual businesses, everything tends to work out over the long term based upon their fundamentals. Many take this to justify rarely looking in on their carefully chosen stock holdings.

This time is indeed different. Macroscopic affairs are occasionally, albeit rarely, overwhelmingly influential vis-a-vis even the most robust of companies.

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