Thoughts, Trading, Value Investing

Value Investing Sell Discipline in Choppy Bear Markets

In choppy bear markets, value investors can adopt a more conservative sell discipline. Instead of starting to sell when the price reaches intrinsic value, the investor can start to sell when the price reaches 70% to 80% valuation.

This applies similarly to the buy discipline, i.e. only buy at a larger than usual margin of safety. The idea is to be more selective – go in slower, and get out faster.

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