You flatter me unduly. Like everyone, I don't bat 100 every time.
I have made some indifferent investments in my time, including companies like ASZ, COF, GWA, MCP, SFH, SLM, where I have not realized much in a way of capital gain reflecting increasing intrinsic value over time.
For the greater part, however, these companies have always paid me a dividend for most of the period of my ownership, so at least they have been washing their faces, to a degree.
Which is why I spend so much time on risk management by trying to comprehend and envisage the downside scenario and what would happen to my investment then. I'm pleased to say that this discipline has worked well for me over time.
So, I will always be happy if the lemons in my portfolio - while not adding much to capital value - at least do not torpedoed me.
Of these, I have sold ASZ and MCP as soon as I realised the business was not what I had originally assessed it to be. (When I realise that my assessment of a business is incorrect, I sell. I don't hold on in the hope that something might miraculously raise the share price to facilitate a higher exit point for me.)
Of the remaining four, I am a reluctant holder of SLM and SFH (read: I am divesting them).
I still hold small positions in COF and GWA, both in which I remain a believer. But I am not adding to these holdings at this stage. (All portfolios have some orphans, and these are mine, I'm afraid).
So please don't think it's simply a case of buying any old stock any watching it go up...there are a few laggards.
The important thing is that the laggards do zero harm, or as close as possible to it!
