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What I'm interested in is how you approach a position where there is no clear cut decision that strikes you as overly right or overly wrong.

It depends on a lot of things.
How does it compare in value relative to your other holdings and would you feel better with the cash there?

I prefer to hold 20-25 positions over 10 so I might keep it if I were closer to 10 than if I was closer to 25.

Same goes for weightings -- if I was already more heavily weighted in things I found to be much better valued I might tend to not sell to add to those. But if I only had a dink in something that was getting more appealing recently I would be more likely to move money from DG to it.

I don't own DG but I hold companies with 5-8% earnings yield and 8-11% EPS growth and prefer those to cash -- but you understand investing better than me and therefor activity is probably more beneficial to you than to me.

I might try to build a model that projects EPS growth out 5 years and put a 16.5 PE on it and see if I felt comfortable with that kind of return remembering that if I pay attention I might get that price and those gains sooner. Could take longer too but if you feel comfortable with a 5 year projection, time is probably on your side with this one.

In the end, with a dink, it probably doesn't matter. Prices drift so I might let it drift to a point where I felt it were an easier decision. If it is distracting you from what you need to do most, I would cut and run.


Not much help but (I feel) you deserve a response.
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