CIBC says Fairfax is likely to be added to the S&P/TSX 60 in December 2024 - sell decisions

[Castanza]

30 minutes ago, Dinar said:

What is CNSFW?  Cannot find it, thank you.

 

Sorry, typo its....CNSWF (constellation software) 

[modiva]

Fairfax Financials and Fairfax India make up 55% of my portfolio (35% and 20% respectively). My goal is to keep it to around 50% for long time. 

[Castanza]

23 minutes ago, modiva said:

Fairfax Financials and Fairfax India make up 55% of my portfolio (35% and 20% respectively). My goal is to keep it to around 50% for long time. 

Man every time I find myself trying to justify a 50% weighting in a high conviction idea I try to reel myself back in and say “do I need a 40% return to be happy and financially secure? What if my 50% idea trades flat for 5 years, how much does that impact my future required growth for financial independence?” 
 

I usually come back to I only need 10% but I’m happy with 15% and really don’t need 30%. 
 

It’s tempting though… 

[Parsad]

4 hours ago, Castanza said:

Man every time I find myself trying to justify a 50% weighting in a high conviction idea I try to reel myself back in and say “do I need a 40% return to be happy and financially secure? What if my 50% idea trades flat for 5 years, how much does that impact my future required growth for financial independence?” 
 

I usually come back to I only need 10% but I’m happy with 15% and really don’t need 30%. 
 

It’s tempting though… 

 

All depends on temperament, time of life, desired return, etc.  I don't know how old Modiva is, but when I was much younger, I would easily swing for the fences like that, because I didn't have as much money or had time to recover from such risk.

 

But today at 55, comfortable and enjoying life, like you, I don't need to swing for the fences any more and I sleep really well.  Although, I'm pretty sure if I see something just stupidly priced, like Fairfax or Meta was in the last few years, I will take huge positions again.  And just like this time, I will reduce the positions as they rebound and maintain allocations that I'm comfortable with.

 

I just live by my mantra for the last 10 years...never fall in love with any stock or investment.  The goal is the best return you can generate while minimizing permanent loss risk to the portfolio.  The portfolio is what you should love...not the components of the portfolio!  Cheers!

[73 Reds]

10 hours ago, Parsad said:

 

All depends on temperament, time of life, desired return, etc.  I don't know how old Modiva is, but when I was much younger, I would easily swing for the fences like that, because I didn't have as much money or had time to recover from such risk.

 

But today at 55, comfortable and enjoying life, like you, I don't need to swing for the fences any more and I sleep really well.  Although, I'm pretty sure if I see something just stupidly priced, like Fairfax or Meta was in the last few years, I will take huge positions again.  And just like this time, I will reduce the positions as they rebound and maintain allocations that I'm comfortable with.

 

I just live by my mantra for the last 10 years...never fall in love with any stock or investment.  The goal is the best return you can generate while minimizing permanent loss risk to the portfolio.  The portfolio is what you should love...not the components of the portfolio!  Cheers!

Sanjeev, largely agree but does your "do not fall in love with a stock" philosophy have anything to do with tax deferral on cap. gains?  Personally, 99% + % of stocks are held in taxable accounts.  For folks like me with no interest in investing one could do far worse than simply DCA'ing into an S&P 500 index fund or equivalent and going on with life.  For those of us with an interest, buying great stocks at sensible prices and not selling unless money is needed or unless the investment thesis changes also generates desirable results.  What is a great stock?  IMO, one that sells essential products/services, possesses near monopolistic qualities, superior management and capital allocation, enviable balance sheet, and remains profitable in just about any economic cycle.  There aren't too many such companies which makes investing a lot less time consuming.  Buy them when they are cheap in relation to their own historical valuation ranges.   No need to fall in love with any stocks but if they aren't broken, why fix them?