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what are you selling today?


muscleman

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Gregmal is the smart guy here: buys cheap, quality stocks that he could hold on for a long time if they continue to drop and sells them for a nice profit (20-30%) if they rebound. Then rinse and repeat.

 

Seems to be the way to make money in this environment.

 

Its the only way.

 

3 guys.

 

Average income in US in something like $70K a year.

 

Each are miraculously thrifty and save like there is no tomorrow. Each save $20,000 a year.

 

Guy 1 is a pussy and just puts it in a savings account yielding 0.1%. After 20 years he has ~$425K and as a result, has to continue slaving away because he can't afford to retire.

 

Guy 2 is also a pussy, but a little more adventurous. He buys bonds yielding ~2.5%. After 20 years he has ~$550k and shares the same fate as guy 1.

 

Guy 3 is a savvy investor and aware that cash is trash and bonds are the equivalent of picking up pennies in front of a freight train. He invests in quality companies and averages 10% a year. After 20 years he has ~$1.4M, is retired, spends half his time in Florida, and owns the business that employs guys 1 and 2....

 

 

Owning quality assets(even on margin) has time and again been a wise decision. Keep it simple. Figure out how to value businesses, and let time take care of itself. They should teach this is high school rather than home ec and wood shop...

 

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I wish puts were cheaper, but with a VIX if 19, puts are a no- go for me, so I raise some cash instead. I do share the aforementioned concerns.

 

Are you buying puts with the VIX around 16?

 

No, I have not yet done any put buying. I’d like to see premiums coming down more and look for a VIX around 13. I haven’t  made a decision if I follow through at all this time, I have been trimming positions , especially in anything that is cyclical.

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Sold my BRK today for a nice quick 3.5% gain. Buy BRK under $200 and sell for a small gain has worked well for me a few times this year. I tend to buy a large amount (10 to 20% position) so am happy to book a small gain. Back to cash and wait for the next shitstorm. The economic news continues to slowly deteriorate.

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Sold my BRK today for a nice quick 3.5% gain. Buy BRK under $200 and sell for a small gain has worked well for me a few times this year. I tend to buy a large amount (10 to 20% position) so am happy to book a small gain. Back to cash and wait for the next shitstorm. The economic news continues to slowly deteriorate.

 

Some days I envy your tax situation on trading, Viking,

 

explained by you - for your part - earlier here on CoBF. [ : - ) ]

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Move next door to Belgium. No capital gain tax.

 

Cardboard

 

It's true. I discussed it years ago with wachtwoord here on CoBF. To me, it's not going to happen as long as my father is still around. [My father is the last person still alive in the generation "above" the Lady of the House and I.] The time will come, eventually, after all the stuff related to settling my father's estate is done and cleared., to study the overall situation.

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More WBA

 

What are your thoughts on exiting WBA?

Other opportunities I find more attractive, plus the thesis has stifted since I invested. I was attracted to a 10 pct FCF yield plus growth, but it has turned somewhat into a restructuring. They call it The Transformational Cost Management Program which gives me goosebumps. I think it'll work out okay, and that long term scripts growth will give them plenty to do, but I like the risk/reward better elsewhere.

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  • 2 weeks later...

Sold my NFLX puts for a 30% gain in 3 days!

 

Thank you Gregmal or genius of CoBF!

 

Glad you made money my man, took half off the NFLX short as I do agree short term this might have played out. Longer term its still in trouble IMO. Rolled the proceeds into a small OPK short. This one is terminally ill and there is little that can save it.

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Thanks Gregmal! These were Jan 2020 so I have learned not to be too greedy with short term expiries. Although, I may have been too early to jump the gun as this shows no support, nor accumulation yet.

 

Timing is everything(see today). If you're going to trade, rule number one is never give up a profit. Rule number two, if you make money too quickly, take it off the table before you become the victim of mean reversion.

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