Is it ok to HOLD CSL stock or i should sell it?, page-11

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MarsC

4,296 Posts.

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19/01/17

12:49

Post #: 21999395
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Originally posted by madamswer ↑

@alikhalid23 ,

I think that buying a share one week and then wondering if you should sell it a week later is ultimately a sure way to the poorhouse, because all you are doing is betting against the natural randomness that is inherent in capital markets.

And, just like betting on Heads or Tails when a coin is flipped, you are as likely to get it right, as you are to get it wrong. And all you will be doing along the way is incurring transaction costs (which might endear you to your stockbroker, but not your bank manager).

Instead, what you should be doing is identifying high-quality, well-managed, conservatively-financed, globally scale-able businesses that are dominant players in industries that are growing strongly and that display good, disciplined structures, with few meaningful competitors, and no dominant customers or suppliers. [*]

For those are the sorts of criteria that allow for pricing power and the generation of long-term organic growth in Revenue, Profits, Cash Flows and Dividends.

And it is this growth that determines INTRINSIC VALUE of the organisation.

And INTRINSIC VALUE is what ultimately drives share price performance.

Buying a stock one day, in the hope of selling it a few cents higher a few days later is a bit f a fool's errand, and likely to serve little purpose other than to drain you of emotional energy.

In summary, when investing:

Buy the business, not share price.
Because the business will take care of the share price.

[*] If CSL is your first investment then, by coincidence, you have stumbled across a company that fits the mould of the perfect company more than any other one I have encountered after almost 30 years of investing. I have owned CSL for many years and if someone held a gun to my head and forced me to sell all my shares, expect one, I suspect you will be able to guess which one I will be left holding.

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"... if someone held a gun to my head and forced me to sell all my shares, expect one, I suspect you will be able to guess which one I will be left holding."

And I thought REH was your true love! Your attentions aren't beginning to stray are they...
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