Easier Buying Than Selling Avoiding Fully Priced Securities

The Transformation of Value Investors into Momentum Investors

by
I’ve never understood why value investors who are very disciplined on the buy side become momentum investors when they sell, saying they’ll wait for the market to tell them when it’s the right time to sell. It seems to me that if you think your portfolio is being hurt by that last move from fair value to overvalued – that that move is greater than what you’d get by going from 60% of fair value to 90% of fair value in something else – then shouldn’t your strategy be to identify names that you’ve missed that have run up to fair value and buy them for the run to overvalued?
Source: http://www.valueinvestorinsight.com/

More by Bill Nygren

Related Tips