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    • JSCB
    • By JSCB 5th Feb 18, 9:40 PM
    • 44Posts
    • 12Thanks
    JSCB
    Never Selling Your Shares?
    • #1
    • 5th Feb 18, 9:40 PM
    Never Selling Your Shares? 5th Feb 18 at 9:40 PM
    Just wondered how many people here plan to never sell there shares (or atleast for a very long time) vs those who buy and sell regularly?

    When I first started I used to look daily at what I'd made or lost but came to find it quite up and down and depressing. Since two of my investments are doing badly at the moment (one being National Grid!), I've been avoiding looking at all as I believe what I dont see on my AJ Bell homescreen can't hurt me, as I'm not planning on selling for 20 years+ anyway!

    Anyone else just buy, buy, buy with no plans to sell? And therefore chose funds and shares for the long term according? Or do you switch and swap, buy and sell?

    I know Warren Buffet once said you should only buy a stock if you'd be happy not to look at it or monitor it for 10years, perhaps thats the right approach?
Page 1
    • Alexland
    • By Alexland 5th Feb 18, 11:11 PM
    • 2,594 Posts
    • 1,974 Thanks
    Alexland
    • #2
    • 5th Feb 18, 11:11 PM
    • #2
    • 5th Feb 18, 11:11 PM
    Owning individual shares is risky but failing to monitor them for changes in their risk profile is even riskier. I plan to not hold any individual shares forever.

    Sure with my funds I generally intend to hold most of them for a long time but it doesn't stop me learning and taking advantage of improvements in the financial services industry.

    Alex
    • george4064
    • By george4064 5th Feb 18, 11:14 PM
    • 981 Posts
    • 1,037 Thanks
    george4064
    • #3
    • 5th Feb 18, 11:14 PM
    • #3
    • 5th Feb 18, 11:14 PM
    I know Warren Buffet once said you should only buy a stock if you'd be happy not to look at it or monitor it for 10years, perhaps thats the right approach?
    Originally posted by JSCB
    He did indeed and I believe itís the right way to go about investing.

    P.S. have a look at my forum signature!
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £3,484.43/£12,000 (29%)
    • planteria
    • By planteria 5th Feb 18, 11:19 PM
    • 5,001 Posts
    • 1,110 Thanks
    planteria
    • #4
    • 5th Feb 18, 11:19 PM
    • #4
    • 5th Feb 18, 11:19 PM
    I plan to not hold any individual shares forever.
    Originally posted by Alexland
    ..some ideas seem too clear to leave it all to fund managers. as below.

    not 'forever', but i certainly have, and intend to hold, some companies long term. my largest holding nowadays is Amazon. i have held for years, and i can't see any reason to get out of Amazon now, or anything significant on the horizon.

    but, if things change, so should our strategy.
    • grey gym sock
    • By grey gym sock 6th Feb 18, 3:25 AM
    • 4,401 Posts
    • 3,954 Thanks
    grey gym sock
    • #5
    • 6th Feb 18, 3:25 AM
    • #5
    • 6th Feb 18, 3:25 AM
    how long is a long time? i have a couple of shares that i've held for about 20 years. i don't think i've ever sold an individual shares before i've held it for 1 year or so.

    (actually, i've sold index funds after a shorter time, but that's only when the proceeds were being used to buy another index fund, which does a similar job, hopefully marginally better.)

    incidentally, of my 2 oldest investments, 1 has been a huge winner, the other has lost most of the money i put in it.
    • bowlhead99
    • By bowlhead99 6th Feb 18, 6:17 AM
    • 7,988 Posts
    • 14,532 Thanks
    bowlhead99
    • #6
    • 6th Feb 18, 6:17 AM
    • #6
    • 6th Feb 18, 6:17 AM
    I know Warren Buffet once said you should only buy a stock if you'd be happy not to look at it or monitor it for 10years, perhaps thats the right approach?
    Originally posted by JSCB
    No, he never said that. His team constantly monitor the portfolio, speaking to management, reading and reviewing every report produced by the investee company and using third-party analysis to complement their own in considering whether it should still have a place in the portfolio.

    With Tesco for example he first invested in 2006, added some a bit later and really kicked up his stake dramatically in 2012 as they had their profit warning. He sold about a quarter in 2013 when he "soured somewhat on the company's then-management" and continued to sell throughout 2014 when the company's problems worsened by the month. By the time of writing his 2015 investor letter he was completely out and apologised it had taken him so long to conclude it was a poor investment at the price he had paid, "An attentive investor, I'm embarrassed to report, would have sold Tesco shares earlier. I made a big mistake with this investment by dawdling."

    His weighted-average hold period for the shares was much lower than ten years and he certainly didn't go through it "without looking at it or monitoring it for 10 years". He monitored it all the time even though it took a while to formulate his eventual conclusion as the information changed. Much of the investment was made in 2011-12 but he completed a substantial sell-down in 2013 with the balance disposed in 2014.

    So, he is not saying pick a company and be happy not to look at it or monitor it for a decade. He has said separately that you should think long term and try to buy things that you'd be happy to hold if the market shut down for ten years, and he has also said that if you aren't willing to hold something for ten years then don't buy it in the first place : investing is different from trading as you are taking lower risks with a longer intended hold period while in trading you are taking measured risks on a short term basis at a high enough volume to make money from lots of short and successful deals. It is generally easier to do the former.

    What you can infer from his quotes is that you should go into an investment purchase with a plan to be able to keep it. He says not to buy a share in a company if you wouldn't want to own the whole company. So of the two choices presented by the OP, he is one who buys with a plan to be able to keep something rather than a short term trader.

    But he has never said don't look at what you've bought; he would agree you shouldn't buy something you don't want to monitor, consider, review, re-evaluate. You should do not do a half-hearted review before buying, instead you should do good enough due diligence before buying that you would be comfortable as you can be of keeping it if you were forced to do that by a ten year market shutdown. But that is not to say that if you bought a billion quid of Tesco in 2012 you couldn't exit a third of a billion of it in 2013 after re-reviewing its prospects.

    Don't make the mistake of thinking that Buffett says you should be happy not to monitor it for ten years. He has never said you should ignore it for ten years or be happy not to be able to monitor it. He employs people on large salaries to monitor everything and flag when something should be dumped.
    Last edited by bowlhead99; 06-02-2018 at 6:19 AM.
    • jungle jane
    • By jungle jane 6th Feb 18, 6:47 AM
    • 609 Posts
    • 1,773 Thanks
    jungle jane
    • #7
    • 6th Feb 18, 6:47 AM
    • #7
    • 6th Feb 18, 6:47 AM
    I'm not planning to sell mine - I've gone for the High Yield Portfolio approach in my ISAs. Not everything is a success (e.g. Carillion!) but the tax free dividends are starting to add up and will be useful as one source of revenue in a self funded early retirement.
    • Novice investor101
    • By Novice investor101 6th Feb 18, 7:40 AM
    • 141 Posts
    • 72 Thanks
    Novice investor101
    • #8
    • 6th Feb 18, 7:40 AM
    • #8
    • 6th Feb 18, 7:40 AM
    The only individual company shares I've ever owned were with the companies I've worked for through share save schemes. Tesco was one. The majority were given free & I did well to sell them before they really tanked. Today I invest in my current employer that runs a buy 1 get 2 free scheme. I plan on holding them for the 5 years until I can sell tax free & then offload them yearly for a nice bonus every year, probably to reinvest (or holidays).
    I've not got the time to research individual stocks & it's way outside my risk profile. I stick to globally diversified equity funds instead.
    • PeacefulWaters
    • By PeacefulWaters 6th Feb 18, 8:05 AM
    • 8,318 Posts
    • 10,656 Thanks
    PeacefulWaters
    • #9
    • 6th Feb 18, 8:05 AM
    • #9
    • 6th Feb 18, 8:05 AM
    I used to read the HBOS reports and accounts.

    I didn't bother in 2007. There was enough in there to suggest they weren't quite as blue chip as I thought.

    An 800p share price is probably trading at around 45p converted back from the current LBG value.

    I'd have sold some at least just by assessing the business lending pages of the R&A.
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