New Mr. Market follower - Question about holding stocks.

[scifos]

I took a look at what you listed as your current holdings and past sales on your peronal website. I noticed that nearly all of the stocks you have sold for 15%+ gain were sold within 3 months of purchase. However, for the stocks you hold now, assuming equal dollar investments in each stock, you are down about 7%. Looking at PTSI (-11.6%, held 21 months) CHKE (+0.5% held 20 months) WSB (-16.4% held 6.5 months) PRK (-16.3% held 4 months) and maybe even CBK (-36.2% held 3 months) I would think that after about 6 months do you re-evaluate these stocks to see if they are still capible of a 15% return? Wouldn't that money return better if you "abandoned" these holdings and moved the money into your newer picks, the ones that have passed your screens lately instead of 10 or 20 months ago?

[stenzrob]

Here we go again!

[scifos]

I did read what was said on

http://www.mrmarketishuge.com/forum/viewtopic.php?t=37

but my specific question was does Mr. Market ever re-evaluate his holdings and, even though he is confident that they will eventually reach a 15% gain sooner or later, does he ever consider moving his money into stocks that may reach 15% sooner, and has anyone else noticed that all his winners have been held less than 4 months?

[jiesen]

holding time

better go back and check again. AXL was held longer than a year and still sold at 15%+. (maybe you weren't looking at the complete dates, including year?)

not all picks were held less than 4 months.

also, I'd suggest going back and re-reading all of the posts again, until you've found the answer to your question. it's in there...

[casinoboy3]

His model just doesn't work that way.

[scifos]

Okay, I read that topic again and I think I understand a little bit more. Are there other topics on this board where I could get a clearer picture of his overall strategy?

I see that my question has been asked before but I am not satisfied with what the answers have been. JARM asked "Is there a time limit/expiration date in which the stock no longer works within your model?" and "Why not just get off of that horse all together and find a new horse?" to which MM replied "because that's not the way my model works." Could you be more clear? Is there somewhere where you explain not only how you pick stocks, but do you do any re-evaluating at all or is it a buy and hold till 15% or armageddon type thing?

JARM also asked "When and under what circumstances (if any) would you cut your losses?" but MM doesn't answer him, instead he says "if I sell all of the stocks that drop 8%, I would have made a lot less money" which may be true, but doesn't answer the question.

I just want to know if there are any set or specified situations, either by how long a stock has been held or by its poor performance or anything else does MM ever reconsider or ever sell a stock without making the 15% ?

as a side note, I would say that 49 sells in a row of 15% or more profit is more a testament to tenatiously holding a stock than to a stock picking model. That said, it still couldn't be done without a good model. I'm also curious about how your portfolio has done against the S&P 500 or the DOW over the past few years.

[Michaelk005]

I see the point, anybudy can hold a stock for ten years untill it hits 15% but 40+ in a row is way above average. And all less then a year. HE still is hugeeeee.

[mrmarket]

Okay, I read that topic again and I think I understand a little bit more. Are there other topics on this board where I could get a clearer picture of his overall strategy?

I see that my question has been asked before but I am not satisfied with what the answers have been. JARM asked "Is there a time limit/expiration date in which the stock no longer works within your model?" and "Why not just get off of that horse all together and find a new horse?" to which MM replied "because that's not the way my model works." Could you be more clear? Is there somewhere where you explain not only how you pick stocks, but do you do any re-evaluating at all or is it a buy and hold till 15% or armageddon type thing?

JARM also asked "When and under what circumstances (if any) would you cut your losses?" but MM doesn't answer him, instead he says "if I sell all of the stocks that drop 8%, I would have made a lot less money" which may be true, but doesn't answer the question.

I just want to know if there are any set or specified situations, either by how long a stock has been held or by its poor performance or anything else does MM ever reconsider or ever sell a stock without making the 15% ?

as a side note, I would say that 49 sells in a row of 15% or more profit is more a testament to tenatiously holding a stock than to a stock picking model. That said, it still couldn't be done without a good model. I'm also curious about how your portfolio has done against the S&P 500 or the DOW over the past few years.

Using this model, I've beaten market indices each and every year since 1990. I see no reason to change it. You, however, are more than welcome to develop any system that works for you and if what I have done adds value to your particular approach then I am sure many of us on this forum would love to hear more.

Straight ahead....

[mrmarket]

Karel has provided pretty good approximations of the overall returns.