Hi finch2 !Yeah, that all sounds logical in theory but I must...

Hi finch2 !
Yeah, that all sounds logical in theory but I must say I very much disagree .
Firstly I dont think using Warren Buffet ideaology is very useful when it is applied to the type of stocks we generally invest in . Certainly not the stocks discussed on H.C anyway. Simply buying undervalued stocks is simply not that simple. Reading H.C. posts and so called expert analyst reports seem to suggest that every stock is undervalued.
No matter how well we research a stock , there is always a good chance that we are wrong, and by not admitting that fact often leads us to heavy losses.
I believe good PORTFOLIO management far outweighs good stock selection if one is to make consistent profits over time. I do believe Benjamin Graham {W.B's mentor} demonstrated this when he made a fortune from randomly selecting 100 penny stocks and actively managing his positions.
Cut small losses quickly before they become huge losses and let profits run I think works better {for me anyway!}
Personally , I had large positions in ABS CNP BNB AFG among others which were all percieved as undervalued at the time that I held them. Thanks to having the discipline to excecute my stop losses , left me with small gains on them all. Would have been a VERY VERY expensive lesson had I not.
Even for long term investments I believe it makes no sense to simply watch capital being eroded through a persistent downtrend.

Cheers!