GLEN ARNOLD INVESTMENTS
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Warren Buffett gives a lesson on when to sell a share: the sale of all his US airline shares

13/5/2020

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A downward movement on the stock market is not a reason to sell a share. What matters is the underlying economics and quality of management.  If those economics or management deteriorate then it might be a candidate for sale, but this is not because Mr Market has shoved the price down.  Warren Buffett said a few days ago,
“If we hold stock XYZ, and we like the business, and the stock goes down 20, 30 or 40% we don’t feel we’re poorer.
We would feel we were poorer if [when something like] what happened to the airline business [occurs]. The world has changed for the airlines.
The virus will cost Berkshire money. It doesn’t cost it money because our stock moves around…But there are certain industries – the airline industry among others – that are really hurt by a forced shutdown.”
He sold, in April, all the airline shares held by Berkshire for $6bn, making a $1bn- $2bn loss on these four investments.
Tomorrow’s newsletter discusses the mindset needed for a successful investor.………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
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    Glen Arnold

    I'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact [email protected]

     investing is about making the right decisions, not many decisions.

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In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long-run, the market is a weighing machine.  Benjamin Graham




  • About
  • Henry Spain
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS