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No. of Recommendations: 12
Great write up. I also bought ELLI back in 2013 around $26 after which it promptly dropped to $20 where I picked up some more. My last purchase was at $53 in March ’15. For how Saul invests, getting out when he did could very well have been the right decision as it was probably 18 months before the stock began take off. But I tend to have a longer time horizon than Saul, and I don’t mind a temporary loss in earnings (and a stagnant stock price) if the reason is for reinvestment to seize an opportunity as long as I believe in management and the potiential opportunity.

Hold or sell? I think either answer can be correct, but it depends on your investing style. I am holding because I believe there is still plenty of room for ELLI to grow, I believe in the product, and I believe in management. But as I said, I tend to look at least 5 years out into the future and I am not as good as predicting performance over the next 1-3 yrs. Saul is much better at that and his investing style reflects that approach. Whether or not ELLI is overvalued now, I believe there will be excellent returns over the long term.

Personally, I have not had great success constantly asking myself if there are better opportunities than what I am invested in. That may work well for the type of investing on this board, but for me it only encourages me to lose patience with stocks that are not successful in the short term when my investing thesis is based on a much longer time horizon. I will still sell stocks, but only based on my investing thesis, not based on trying to find the absolute best opportunity.
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