AAP ==> The West Roxbury Winner

[Deaddog]

Top line is a biggie.

Why Top line? It doesn't seem to be one of your stock picking criteria.
And what has to happen to the top line in order for you to change your mind?

[riverbabe]

Why Top line? It doesn't seem to be one of your stock picking criteria.
And what has to happen to the top line in order for you to change your mind?

This conversation is such fun to watch. Dog, do you have a death wish? Have you noticed his pictures? He really IS HUGE!! but he is also way too much of a gentleman to beat up a grandpa I think. So carry on...

[mrmarket]

Why Top line? It doesn't seem to be one of your stock picking criteria.
And what has to happen to the top line in order for you to change your mind?

Top line is one of my stock picking criteria. When I break down my Top 5 picks it is a very important component.

[Deaddog]

This conversation is such fun to watch. Dog, do you have a death wish? Have you noticed his pictures? He really IS HUGE!! but he is also way too much of a gentleman to beat up a grandpa I think. So carry on...

No not a death wish, a search for a straight answer. And yes I know that yappy dogs are very annoying.

Yup I’ve seen the pictures and am very impressed. Mind you it looks like he’s putting on a few pounds in the recent ones. ( Beware of what happened to me; My narrow waist and broad mind changed places).

Even being old and decrepit, I always count on adrenalin kicking in. I can run faster scared than His Hugeness can mad.

[Deaddog]

Top line is one of my stock picking criteria. When I break down my Top 5 picks it is a very important component.

Ah ha I didn’t know that. How about sharing the process.
What are you looking for and what has to change to get you to change your mind?

[billyjoe]

Deaddog,
It's all here if you read it all http://www.mrmarketishuge.com/huge/


------------billy

[mrmarket]

Maybe we should just call him grumpy dog.....

[Deaddog]

Maybe we should just call him grumpy dog.....

He doesn't care what you call him; after all he's a dog. He just wants to be fed. What he's hungry for is knowledge.

Like a dog who has been abandoned and adopted by a new family he’s trying to adjust to the rules of his new home. A lot of them are the same. Stay off the furniture, don’t take food off the table, and don’t pee on the rug.

However this new home doesn’t seem to have a rule on what to do with losses. In the past this poor old dog was punished for letting a small loss turn into a big loss. Protect your capital was beat into him by the market in a couple of meltdowns.

So when the dog points out a possible loss to his new master and gets the reply, “It’s a good stock we’ll just ignore it for now” or “easy come easy go” and is told just leave it alone, you can see where he’d be confused.

Over myriad of years dogs have naturally developed an instinctual aversion to loss. They know they are bad and should be avoided. Little losses, left unattended, grow to become huge losses and can be very detrimental to ones portfolio.

The dog wants to learn how to deal with the occasional loss. It goes against his instinct to ignore it. The Boss says we’ll deal with it when the Fundys change but won’t say how the Fundys have to change or how we will deal with it when they do.

So all the dog requires is a few more scraps of knowledge. If he keeps yapping and gnawing away at it; who knows what tidbits Mr. Market may throw his way.

[Deaddog]

Deaddog,
It's all here if you read it all http://www.mrmarketishuge.com/huge/


------------billy

Billy I've been over it a few time but I'm re-reading it and picking up some stuff I missed. Thanks.

[mrmarket]

He doesn't care what you call him; after all he's a dog. He just wants to be fed. What he's hungry for is knowledge.

Like a dog who has been abandoned and adopted by a new family he’s trying to adjust to the rules of his new home. A lot of them are the same. Stay off the furniture, don’t take food off the table, and don’t pee on the rug.

However this new home doesn’t seem to have a rule on what to do with losses. In the past this poor old dog was punished for letting a small loss turn into a big loss. Protect your capital was beat into him by the market in a couple of meltdowns.

So when the dog points out a possible loss to his new master and gets the reply, “It’s a good stock we’ll just ignore it for now” or “easy come easy go” and is told just leave it alone, you can see where he’d be confused.

Over myriad of years dogs have naturally developed an instinctual aversion to loss. They know they are bad and should be avoided. Little losses, left unattended, grow to become huge losses and can be very detrimental to ones portfolio.

The dog wants to learn how to deal with the occasional loss. It goes against his instinct to ignore it. The Boss says we’ll deal with it when the Fundys change but won’t say how the Fundys have to change or how we will deal with it when they do.

So all the dog requires is a few more scraps of knowledge. If he keeps yapping and gnawing away at it; who knows what tidbits Mr. Market may throw his way.

Diversification is my protection. It works.

[Deaddog]

What would it take for you to sell at a loss? Or will you hold a stock forever to keep the consecutive win streak intact?

I will hold it until something fundamentally changes with
the picture. Easy come easy go..this one will be back.

Any specific fundamentals you focus on?

Top line is a biggie.

Why Top line? It doesn't seem to be one of your stock picking criteria.
And what has to happen to the top line in order for you to change your mind?

Top line is one of my stock picking criteria. When I break down my Top 5 picks it is a very important component.

Ah ha I didn’t know that. How about sharing the process.
What are you looking for and what has to change to get you to change your mind?

Maybe we should just call him grumpy dog.....

He doesn't care what you call him; The dog wants to learn how to deal with the occasional loss. It goes against his instinct to ignore it. The Boss says we’ll deal with it when the Fundys change but won’t say how the Fundys have to change or how we will deal with it when they do.

Diversification is my protection. It works.

This is way to fast for me.
Dogs have to focus on one thing at a time.
What happened to Fundamentals? Top Line? Conditions that would cause you to sell at a loss?

BTW: It seems other well-respected investors disagree with your assertion.
Warren Buffett says, “Diversification is protection against ignorance.”
Charlie Munger says “Wide diversification, which necessarily includes investment in mediocre businesses (I read holding onto non performers for a long period of time), only guarantees ordinary results.”

[Chips]

Thanks for asking these questions there Deaddog. I've beem wondering the same for some time. Mr. M is still holding VIT, CIB and AAP from last year. I sold my VIT and AAP quite some time ago and never got into CIB. I understand most of his picking criteria, but don't seem to ever see a "get out now" rule. For me, holding a looser for too long ties up cash that could be put to better use in another great pick (Just my way of thinking anyway).

[mrmarket]

Thanks for asking these questions there Deaddog. I've beem wondering the same for some time. Mr. M is still holding VIT, CIB and AAP from last year. I sold my VIT and AAP quite some time ago and never got into CIB. I understand most of his picking criteria, but don't seem to ever see a "get out now" rule. For me, holding a looser for too long ties up cash that could be put to better use in another great pick (Just my way of thinking anyway).

One thing I would like to emphasize is that no size fits all. It's YOUR money..please do what YOU want with it.

[Chips]

One thing I would like to emphasize is that no size fits all. It's YOUR money..please do what YOU want with it.

Ah, quite right. It's just my comfort level speaking. I guess I get a little too nervous sometimes. You are HUGE!!
Thank you for all the great picks

[mjrichmo]

boom boom.