Hi nirvana, your post is of great interest to me. In the said IT company, Tanla, my ride has been like yours, but in Sequent, I exit immediately on hearing the management say that the next 2-3 quarters are going to be soft. My findings for me: I find in neither of the cases, the issue was the circle of competence. It is the Process aka Rules. The Sell Rules. As I saw with great dismay Tanla plunge below the lowly lows I simultaneously saw that I was a victim of myself : I did not exit at the 200 MA filter. I knew why I did not. Because of the Earnings. Earnings. Earnings. My mind, unknown to me, was seeing [past] earnings as the Moat. Over the last one year I have moved towards a mix of Value Buying that I have always done and CANSLIM which I immensely admire and have profited by. I find no contradiction I am comfortable. All it means that I will continue to buy in stage 4 and stage 1 backed by Circle Of Competence. And I sense that the Sell Rule will be different for a stock that has completed a downtrend versus one that has entered a downtrend. Tanla was in a confirmed downtrend over last few months and I ignored it on account of superb earnings and the Earnings Runway. Having 80% of my PF concentrated in the top 4-5 holdings, the Sell Rules are supreme. An aside : i did make use of Tanla plunge: I sold 50% of the holding and covered back at a difference of 2-3 rupees to use the loss against the profit booking in April. It does help.
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