I divested all 90,800 shares of Libra Group on the 04/11/2016 at $0.192, recognizing a small profit in the process. Libra was a tiny, non-core holding, and I wasn’t intending to spend time to write about it, but on hindsight, there are some take-home lessons to be gleaned from this.
So why did I sell out? Aside from general portfolio management reasons (I’m in the midst of cutting down my holdings yet further. I forsee TTI’s final portfolio to be ultra concentrated, with sizable, large positions in a few companies, pretty much in line with the change in my investing style since 2015), I think there are 3 key red flags that stand out.
To sidetrack a bit, I think the traditional Graham and Dodd’s “buy and hold” strategy has been over -cited, over-copied and generally misunderstood. Particularly for small and mid caps, and particularly so in the local ......