There is No Magic Investing Formula

Nov 2007

So what does drawing a line in the sand [to sell after a decline of] 50% do for you?  It prevents a larger decline, but it can also prevent a very satisfying recovery.  Here’s the bottom line:  There is no magic line in the sand.  That is, there is no arbitrary pullback (small or large) that should itself trigger a sale.  The best time to sell is when your long-term view of an investment’s intrinsic value is such that today’s price doesn’t offer sufficient reason to remain invested.