do we dare bring up the c word?, page-12

Hi choo,

I probably should have added that my trading block - instead of what you do with the pocket money bit - this is what I do.

I have my core holding.

I have a trading parcel - if I buy say, 1,000,000 in a trade (my present trade) - I will let it ride until I take a technical exit - but I will only sell say eg. 800 or 900k ------- the remaining 100 to 200 goes into the core holding. The number held will vary depending on how much I have made on that run. It might be as low as 100k or it might be as high as 500k - depends on the run and cash held.
If I have picked the timing wrong - well, I just have em for a bit longer.

I am not fussed how it throws out the 'balance'of the
portfolio as I don't believe in balance as such. I do NOT believe in selling down a holding because it has gotten so big to throw things out of balance - I have never seen the sense in selling down your best performing shares to suit some planner's idea of balance- express ride to being mediocre imo.

I do this with a few companies (none as liquid as fml unfortunately).

It works really well and has got me into the top 20 and near in a couple of cases.

I have only been stuck with one dud and I was able to exit with a small loss - one of the few companies that I hadn't visited and had personal contact with - hmmm, tells me something.

With highly liquid stocks it is a comfort to know that you can always exit the market without driving the sp down too much - but that said as long as I am happy with them I am happy to ride the troughs - bloody hard if they are big though.

The advantages of knowing them intimately are tremendous -- in the big down I had a few companies that people were throwing out that was just silly. (I suppose the poor buggers had to raise cash). It was like throwing money out the window - luckily I was there to catch some - :)

I will of course be happy to see fml at much higher prices - but my guess is that the higher the sp is, the more we will be on the radar, and, the harder it will be to work this very profitable little gig. So I am happy with a little share sub 10 at present - not many notice thankfully. Arrh well, by the time they wake up I should be happy with my holding - I am pretty happy already, but not finished yet.

have a good arvo Pinto