Easy come...

[brewer12345]

I own a substantial stake (for me) in MOVI. I bought it last year in the teens and it has had a remarkable run. I believe the stock is worth 40 or more, so I had no interest in selling at 33. Today was somewhat painful to watch, but I still believe that the stock is worth a lot more than the market price, so I am more than willing to sit it out and hold for the long term. Days like this definately test one's testicular fortitude.

BTW, I think the stock is a steal at these prices if you are inclined to take a flier.

 

[Nords]

Yikes, Brewer, would a trailing sell stop have hurt you that badly?

Thanks, I'll add this one to the watch list!

 

[brewer12345]

I don't use trailing stops. If you are trying to guard against a collapse, they usually don't work. Otherwise, use of a stop tends to get you stopped out of an attractive investment due to short term fluctuations. In any case, I don't buy anything that I wouldn't be willing to hold through an ugly bear market and I have a multi-decade investment horizon, so short term thinking is something I try hard to avoid.

 

[wildcat]

Brewer -

Off topic. Are you following the newspaper stocks or does it fit into your "left for dead" category? A bit pricey for me but nobody is buying in that area. Dean's Food spinoff today I believe under the name TreeHouse Foods, don't know the ticker. Fav older spinoff MGI. Good business. And this has been your Bloomberg update.

 

[brewer12345]

I find the newspaper stocks to be pricy. Haven't looked at MGI, but I will. Personally, I am waiting for AEFA/Ameriprise to spin off. If it is available at or below book, I will be an eager buyer.

 

[Nords]

I don't use trailing stops.  If you are trying to guard against a collapse, they usually don't work.  Otherwise, use of a stop tends to get you stopped out of an attractive investment due to short term fluctuations.  In any case, I don't buy anything that I wouldn't be willing to hold through an ugly bear market and I have a multi-decade investment horizon, so short term thinking is something I try hard to avoid.

Nothing like an overnight 15% drop to test one's mettle in these philosophies!

What I want is a reliable indicator to distinguish the "short term fluctuations" from the "long term disasters". So far the only one I've found is any wire-service photo of a CFO being led away in handcuffs...

 

[brewer12345]

To my way of thinking, if you are picking stocks and can't spot the long term disasters, you deserve what you get until you move to indexing.