Thanks for your excellent post! The way you described the different tiers was very interesting to me. Had a question for you about that. As a novice investor, I find it easier to relate to the different tiers as I build up a position. Not when I’m sizing it down. I was wondering if you have any suggestions on how to do that. When sizing down, mentally, I find it much easier to sell completely.
For ex, recently I’ve been struggling to size down Crowdstrike. It has been a double digit allocation for me but I feel that it’s numbers are weakening. I’m not sure how much to lower the position size. Or rather, which tier to put it into. How would you approach a situation like that where you need to take action on a bedrock of your portfolio?
To be clear, I’m not asking for specific advice related to Crowdstrike. Just want to learn how you approach these situations.
Thanks again for the time and effort you put into your posts. Really appreciate it.
Thank you stocknovice for an excellent and clear exposition of portfolio strategy. One observation. As you remark it is important to read and then review transcripts. Its also important to read them critically. I have found it easy to miss or misinterpret comments during the earnings call because they are mentioned only in passing, or buried in the Q&A or because I start reading with a conviction bias based on old info. Its like missing something in front of your eyes which you don't expect to see.
I was motivated to go back and reread your post on stock analysis. Like some of the others who have commented I collect lots of data which tends to need organization. Your spreadsheet looks like a solution for that. It looks like an EXCEL spreadsheet which I vaguely remember how to use.
With regard to prior year financials have you found some source that presents the aggregated multiyear data for a stock ? Or does one have to dig out the information year by year?( which would be time consuming but not a tragedy.)
Hi stocknovice,
Thanks for your excellent post! The way you described the different tiers was very interesting to me. Had a question for you about that. As a novice investor, I find it easier to relate to the different tiers as I build up a position. Not when I’m sizing it down. I was wondering if you have any suggestions on how to do that. When sizing down, mentally, I find it much easier to sell completely.
For ex, recently I’ve been struggling to size down Crowdstrike. It has been a double digit allocation for me but I feel that it’s numbers are weakening. I’m not sure how much to lower the position size. Or rather, which tier to put it into. How would you approach a situation like that where you need to take action on a bedrock of your portfolio?
To be clear, I’m not asking for specific advice related to Crowdstrike. Just want to learn how you approach these situations.
Thanks again for the time and effort you put into your posts. Really appreciate it.
Best,
Zeecko
Thank you stocknovice for an excellent and clear exposition of portfolio strategy. One observation. As you remark it is important to read and then review transcripts. Its also important to read them critically. I have found it easy to miss or misinterpret comments during the earnings call because they are mentioned only in passing, or buried in the Q&A or because I start reading with a conviction bias based on old info. Its like missing something in front of your eyes which you don't expect to see.
I was motivated to go back and reread your post on stock analysis. Like some of the others who have commented I collect lots of data which tends to need organization. Your spreadsheet looks like a solution for that. It looks like an EXCEL spreadsheet which I vaguely remember how to use.
With regard to prior year financials have you found some source that presents the aggregated multiyear data for a stock ? Or does one have to dig out the information year by year?( which would be time consuming but not a tragedy.)