Profit taking, page-221

That is true, as I’ve learned through 20 years!
But what I have also learned is take those 50% pullbacks in great stocks to top them up. As they equally rebound the hardest back up, plus a lot, when the correction is over.

So you must be ok with a 50% pullback, otherwise buy coles and banks.

But another topic for discussion: when markets are frothy, and you have done well out of growth stocks, how do you position fir that pullback?

My advice, just start building cash which I did about 18 mths ago. Now holding 35% cash.

If you dont take profits on your great growth stocks, through the many bumps you’ll find many going to 200-500% up, hence if they fall 25-50% you’re often still well ahead

And if you have that 25-40% cash its a beautiful thing just topping them up through 6-18 mths correction.