The Never-Sell Experiment
I think one of the toughest things to do as an investor is to hold onto a stock which has gone way past most measures of value. This becomes even more so when a large amount of money is involved.
Looking at my investing history I have sold many, many stocks way too soon when I believed they were getting too pricey relative to their earnings. To counteract this happy trigger finger condition, I came up with the Never Sell Portfolio Experiment. For inclusion in the experiment all stocks must be:
1. Priced below 2 bucks a share.
2. Profitable or nearly so.
3. Financially healthy (decent balance sheet).
The total price of any holding before commission will be less than $200. This mitigates the risk of any one holding. The worst case scenario for any holding will be a couple hundred dollar loss, but on the upside the sky will be the limit.
Never selling will be tough when an event occurs like ANTP's meteoric rise and subsequent fall, but to keep the experiment true to its purpose nothing must be sold.
I have around 80 stocks in the portfolio so far and will be adding more as I find them. It will be interesting to see how it plays out........
Many huge winners will be found here among the micro-caps. You probably have one in your portfolio right now. There will be many seemingly good reasons to sell it too early.......
