I think you are misunderstanding my point! Price should not be a factor in any calculation of value because its got nothing to do with value. Price is simply what Mr Market is prepared to buy or sell a share in the company for at any given moment.
You are correct that I might chose to sell shares if a company's price rises far above my valuation. In the case of CCP though I knew my valuation was very conservative, I knew they were likely to over deliver with FY results, and the price was so much higher than my entry that I saw very little risk from holding.
One lesson I have learnt is that with investing, whenever you are tempted to sell a good company because its share price has risen - do something else until the temptation passes! So far I have been 100% rewarded with that approach, and very richly at times.
I managed to resist the temptation to sell down my holdings in RCG when it had nearly doubled at a bit north of $1, now they are at about $1.80. I shake my head when I think how close I came to selling down just to rebalance the position size - a strategy I have utterly rejected now!
Conversley I did sell some CCP at around $10 when I felt I was a bit overweight in them and had a couple of other opportunities that i needed capital to invest in. I am currently about 25% worse off for that decision.
I think investing for the long term is an incredibly boring and inactive thing and one of the harder skills to learn is to avoid making transactions. Whenever I get tempted I try to immerse myself in lengthy and tedious research until the feeling passes!
CCP Price at posting:
$15.76 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)