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Tom said BWA was a growth stock disguised as a cyclical stock. When this stock made its run to 100 I was a total believer. But since the spectre of steel prices, along with the recent performances of auto companies, this weekend I'm thinking about selling my BWA for a small profit. In the long-term, I think this stock will be fine. Although, I'd like to think of myself as a long-term investor, I cannot see myself being comfortable with BWA. For one thing, there's a little I know about the company, but not enough about it and the industry to feel completely confident. Vanguard's ex-Windsor manager, whose name I cannot recall, in his book talked about owning BWA several times. Neffer (I believe that's his name) mentioned he would make calculated bets on a cyclical recovery, and that in part expalins his success. With these stocks Neffer would sell when it reached what he called an "inflection point."

In the FAll, As BWA was making gains daily, I often thought about Neffer's inflection point. This time I think I will go ahead and pull the trigger, keep cash, and wait for a better opportunity. Lately there has been some selling with above average volume, this compounded with the concerns about steel prices, I'm a little worried about BWA maintainig its guidance. If the revise their guidance lower, then the stock will surely fall below my cost - and I wouldn't like that.

In the long-term, I think the company's product will sustain further growth, so I think the stock will hold up fine.
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