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I had mentioned in one of my previous posts about reviewing past divestments in order to ascertain if they were indeed good choices or bad decisions. This is because the measure of an investor is not only in the performance of the companies he currently owns, but also the decisions he had made in the past with regards to companies which he felt did not fit his criteria. Measured as such, one can safely conclude that certain decisions should have or should not have been made. Of course, there may be other extenuating factors involved in each decision, but let’s keep the analysis simple for now in order to avoid confusing parallel possibilities which may open up further complex debates. Luckily, I had kept very meticulous records since I started investing in Dec 2004, and I have the exact details (down to the dollar) of each trade and divestment gain/loss, which is why I can compile a very accurate portfolio summary of realized gains to date.
Below is a table in which I have detailed the companies I used to own (all the way since I started investing in the stock market, to date) and the original rationale for divestment. These are also chronicled under my “Investment Mistakes” section which you are free to access to read on more details on why I sold each company, and to be truthful many were divested before I adopted value investing (except, of course, for the more recent ones). The next table then shows the difference between my original cost, my divested price and the last done market price. The simple table does not account for dividends along the way, but seeks to determine if a decision was, on hindsight, a good or poor one based on current information about the company and also how it has been doing since I divested it. Admittedly, a full and detailed analysis would take up a lot more space (and probably more posts) than this, so I am keeping it simple just to illustrate the principle of reflection on one’s decision and how it can help improve one’s thought process and investment philosophy. Read more...[caption id="attachment_2568" align="alignright" width="150" caption="Photo by John Althouse Cohen"][/caption]
I had mentioned in one of my previous posts about reviewing past divestments in order to ascertain if they were indeed good choices or bad decisions. This is because the measure of an investor is not only in the performance of the companies he currently owns, but also the decisions he had made in the past with regards to companies which he felt did not fit his criteria. Measured as such, one can safely conclude that certain decisions should have or should not have been made. Of course, there may be other extenuating factors involved in each decision, but let’s keep the analysis simple for now in order to avoid confusing parallel possibilities which may open up further complex debates. Luckily, I had kept very meticulous records since I started investing in Dec 2004, and I have the exact details (down to the dollar) of each trade and divestment gain/loss, which is why I can compile a very accurate portfolio summary of realized gains to date.
Below is a table in which I have detailed the companies I used to own (all the way since I started investing in the stock market, to date) and the original rationale for divestment. These are also chronicled under my “Investment Mistakes” section which you are free to access to read on more details on why I sold each company, and to be truthful many were divested before I adopted value investing (except, of course, for the more recent ones). The next table then shows the difference between my original cost, my divested price and the last done market price. The simple table does not account for dividends along the way, but seeks to determine if a decision was, on hindsight, a good or poor one based on current information about the company and also how it has been doing since I divested it. Admittedly, a full and detailed analysis would take up a lot more space (and probably more posts) than this, so I am keeping it simple just to illustrate the principle of reflection on one’s decision and how it can help improve one’s thought process and investment philosophy. Read more...
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I had mentioned in one of my previous posts about reviewing past divestments in order to ascertain if they were indeed good choices or bad decisions. This is because the measure of an investor is not only in the performance of the companies he currently owns, but also the decisions he had made in the past with regards to companies which he felt did not fit his criteria. Measured as such, one can safely conclude that certain decisions should have or should not have been made. Of course, there may be other extenuating factors involved in each decision, but let’s keep the analysis simple for now in order to avoid confusing parallel possibilities which may open up further complex debates. Luckily, I had kept very meticulous records since I started investing in Dec 2004, and I have the exact details (down to the dollar) of each trade and divestment gain/loss, which is why I can compile a very accurate portfolio summary of realized gains to date.
Below is a table in which I have detailed the companies I used to own (all the way since I started investing in the stock market, to date) and the original rationale for divestment. These are also chronicled under my “Investment Mistakes” section which you are free to access to read on more details on why I sold each company, and to be truthful many were divested before I adopted value investing (except, of course, for the more recent ones). The next table then shows the difference between my original cost, my divested price and the last done market price. The simple table does not account for dividends along the way, but seeks to determine if a decision was, on hindsight, a good or poor one based on current information about the company and also how it has been doing since I divested it. Admittedly, a full and detailed analysis would take up a lot more space (and probably more posts) than this, so I am keeping it simple just to illustrate the principle of reflection on one’s decision and how it can help improve one’s thought process and investment philosophy. Read more...
