Writer0224

1
Writer0224 (100659 PM) you are taking huge
risks
Perception
Buying growing companies at freebie prices is
perceived to be very risky.
2
Kinds of Risk

• Mostly undefinable
• Good Risk low downside, large upside
• Bad Risk - (if its not good, its bad)
• Definable Risk - casino
• No Risk driving 100 mph into a wall.

3
Sell Strategy

• Sell a stock if you have something better to own.
  Cash may be better than your stocks. If hedge
  funds are panic selling, cut out first --- ask
  questions later before they clobber you. Get
  back in later at a lower price.

4
Im ruthless

• Ill sell out of anything, at any time, for any
  reason. Or at least that is how it appears.
• 1. Business fundamentals change.
• 2. Bad news comes out that changes my perception
  of the company.
• 3. To buy something better.
• 4. I feel like there is downside risk and I can
  buy back cheaper.

5
Bad Logic

• Playing with the Houses Money
• Margining up on things you dont understanding
• Diversifying across average investments and
  expecting to be better than average
• Going long in a bear market
• Going short in a bull market