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Looking at my history of investing activity, I am probably too quick to sell my winners. If one of my investments is up 10% from my cost basis and there have been no significant changes to the company to justify it, I start to get an urge to sell.

I cured myself of this problem by practicing to sell only partially and sporting a never touch position in those stocks where I carefully built a position over time. Allowing myself to ride into the sunset with Chaoda, AOB and AIB was valuable in developing this temperament. Today, my portfolio has 30 multibaggers (for the entire stake) that constitute > 15% of my equities portfolio (including cash). The money I made in multibaggers far overshadows the few total losers. With time, I have built increasing confidence to have larger position sizes to ride on without trimming during volatility phases and especially when they seem to me as overvalued. With time, I have come to the conclusion that an exercise on valuation does not work with most of those firms that are on a trajectory to become multibaggers. Market does not like multibaggers as those are the cases that escaped it. One can never know apriori which firms can go on to become great and hence the need to stay invested or even invest more during apparent overvaluation.

I am curious why you think DIS and GOOG are overvalued?

I tend to stay nervous about firms whose relevance, existence and health cannot be imagined by me beyond 10 years. On that count, I stay worried about GOOG but not DIS. I am happy to maintain a large position in GOOG as it does not appear expensive to me by most relative valuation metrics.

The firms I am selling are those that are either pure speculative plays or those whose business case don't excite me anymore after holding for several years. I think very hard on trimming my winners these days leave alone selling completely.

Anurag
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