Buy at a bargain price, when the upside reward/downside risk ratio is highest. Be patient.
Sell the losers. Stay with the winners.
Sell the losers early. Reinvest into GREAT stocks.
Sell the under-performers early. Reinvest into GREAT stocks.
# Sell the overpriced stocks to lock in the 'transient bubbling' gains (PE > 1.5x Signature PE). Reinvest into GREAT stocks.
Reinvest and Stay with the GREAT winners for the long term.
Stay concentrated. Do not overdiversify. Invest big.
? Tactical Asset Allocation when the market is OBVIOUSLY too expensive or too cheap. (Difficult strategy to apply consistently).
# Warren Buffett's investment in PetroChina
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