Fat Pitch method.
Great companies (wide-moat) selling at a discount are rare. So when you find one, you should pounce.
Over the years, a wide-moat company will generate returns on capital higher than its cost of capital, creating value for shareholders.
This shareholder value translates into a higher stock price over time.
Move In and Out of Wide-Moat Stocks
IF YOU SELL AFTER MAKING A SMALL PROFIT, you might not get another chance to buy the stock, or a similar high-quality stock, for a long time.
For this reason, it is irrational to quickly move in and out of wide-moat stocks and incur transactions costs ( and also capital gain taxes in some countries).
Your results after trading expenses (and taxes), likely won't be any better and may be worse.
Low Turnover
That is why many of the great long-term investors display low turnover in their portfolios.
They have learned to LET THEIR WINNERS RUN AND TO THINK LIKE OWNERS, NOT TRADERS.
Great companies (wide-moat) selling at a discount are rare. So when you find one, you should pounce.
Over the years, a wide-moat company will generate returns on capital higher than its cost of capital, creating value for shareholders.
This shareholder value translates into a higher stock price over time.
Move In and Out of Wide-Moat Stocks
IF YOU SELL AFTER MAKING A SMALL PROFIT, you might not get another chance to buy the stock, or a similar high-quality stock, for a long time.
For this reason, it is irrational to quickly move in and out of wide-moat stocks and incur transactions costs ( and also capital gain taxes in some countries).
Your results after trading expenses (and taxes), likely won't be any better and may be worse.
Low Turnover
That is why many of the great long-term investors display low turnover in their portfolios.
They have learned to LET THEIR WINNERS RUN AND TO THINK LIKE OWNERS, NOT TRADERS.
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