Ann: CYBG PLC Third Quarter 2019 Trading Update, page-156

First 156 Last

Share
Profile

Follow
ace7979

75 Posts.

12

16/08/19

08:00

Post #: 40011061
Share

Originally posted by madamswer: ↑

There's a chance the market sees something you may have missed.. assuming the story doesn't change significantly, do you pre-set a portfolio limit or continue to increase as it drops?

Sure, nobody bats 100 on each share they purchase. I may indeed have missed something fundamental which could result in a permanent impairment of the value of the company. So I am always alert and receptive to evidence of where my analysis is flawed.
(But what I certainly do not do is to take my cues as to whether my valuation is right or wrong based on what the share price is doing at any given point in time.)

As for pre-set portfolio limits, that's a good question; generally I continue to buy more as a share drops [*] (with the due re-visiting stress-testing of my investment thesis at all times).

But it depends on the quality of the business: I would happily re-position my portfolio to have, say 15% of it invested in a single company if that company is of truly high quality (of course, truly high quality companies rarely become sufficiently undervalued to justify a 15% portfolio position).

But for a company like CYB, with its somewhat limited track record and the nature of its business model and the inherent risk, I would probably cease buying, irrespective of it falling further, if the stock came to represent 7.0% or 7.5% of my invest-able capital.

I'm probably half-way there at the moment.

Hope that helps.

(But, remember, we all have different investing philosophies, levels of patience and tolerance for risk, so my view should no way be viewed as any sort of monopoly methodology for getting it 100% right 100% of the time.
It's just what I have found to work for me over the course of my investing career.)

[*] If I like hamburgers at $5.00, then I like them even more at $4.00
.

Expand

Thanks for the reply and your many informative posts over the years! I'd probably still be chasing 'exciting drill results' , 'share prices about to explode!!!!' or 'investing' in hemp or cobalt, if I hadn't stumbled upon your writings

CYB Price at posting: $2.39 Sentiment: Buy Disclosure: Not Held
5 Upvote

1 Great analysis

Reply

Top Stories

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

IMA

Issues emerging as Australian companies tackle critical minerals challenge

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

There are more pages in this discussion • 135 more messages in this thread...

First 156 Last

Add VUK (ASX) to my watchlist

Ann: CYBG PLC Third Quarter 2019 Trading Update, page-156

Top Stories

Defence MOU for propulsion systems pushes Aurora Lab shares higher

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

Issues emerging as Australian companies tackle critical minerals challenge

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Cauldron Energy reports "excellent" uranium assays in latest drill run

NRW Holdings inks $109M deal with BHP for works at Jimblebar

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Featured News