Over the years I've come to the conclusion that while I am reasonably good at evaluating opportunities and the buying, I am spectacularly bad at selling. So I decided to take the emotional "me" out of the equation by developing a set list of criteria I could rely on to essentially make the decision for me. I am a long-term holder of equities and prefer holding periods that range from "years" to perpetuity and I have zero interest of caring about short-term noise. Here are some ideas I had in mind:
1) The companys financial metrics I consider important have not improved for 3 years despite there not being a massive downturn in the total economy or the sector where the company operates. 3 years puts a company on a watchlist for selling considerations and 5 years of no improvement make it a goner automatically.
2) I deem that the honesty of company management towards various stakeholders has seen significant decline
What other rules would you add to such a list if your goal was long-term holding with little churn, while still doing your best to avoid permanent capital loss?
Submitted November 24, 2018 at 08:13AM by -quakeguy- https://ift.tt/2BvXOul
