Buy/Sell

One of the most difficult parts of any investment strategy is determining when to buy or sell a stock. Once we identify a company which meets our criteria, we try to buy at a discount from our assessment of intrinsic value in order to provide a margin-of-safety for the investment.  Ideally, we would never sell a stock which was acquired at a favorable price, but there are a number of situations in which we would sell, including:

• We recognize deterioration in the underlying fundamentals of the stock
• When the company reaches a price level that exceeds our estimate of over-valuation
• When we find a better idea