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No. of Recommendations: 5
Hi 3xround,

It is important to know that two things are almost certain in investing:

A) the stock you just sold will go up after you sold it

and

B) the stock you just bought will go down after you bought it

Those are pretty much inevitable. It's impossible to time the bottom or the top. All you can do is make an educated guess based on valuation.

Don't worry about the short term moves. Actually, I'd say don't worry about the long term moves too much - at least in hindsight. Given enough time in investing, you will almost certainly bail on a big gainer too soon and hold a loser to the bottom.

Also, as BRD mentions, there were two buy recs immediately following the HI sell (Amazon and Whole Foods). So that is the specific answer to your question "Where were we to put the money?"

As to HI being up 6%, HI traded at a high of 31.14 the day of the sell rec. It dropped immediate after the rec, liking from people not using limit orders on this thinly traded stock. Even now it's not quite back up to there. It had a high of 30.80 today. I'm still holding. I didn't need the cash to buy WFM and AMZN. If you can be patient, these thinly traded stocks can recover from a MDP induced drop.

Finally, if you sold HI and bought WFM and AMZN, you're really not down 6%, are you? Think in terms of a portfolio. My WFM is up 7.5%, my AMZN up 8.5%. Even if I had a 6% loss on HI I'd still be ahead.

Doug
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