Great post, thanks for sharing Michael.

I often wonder whether the goal of optimization (as referenced in the Cerrone quote) is likely to be a net positive or a net negative over the long run (see Lynch on watering the weeds). Of course, the alternative suggests an approach that seems sacrilegious to the traditional value investor, and fairly so. They are skeptical of the argument that a company has "earned the right to stay in the portfolio." Like yourself, I think that idea has merit. My conclusion is there's more than one way to play the game.

Thanks again!

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Thanks for the comment Alex.

Yes, deciding not to sell or trim here does come with a few "value investor ghosts". I can see the argument for taking money off the table. In the spirit of transparency I trimmed the name when it crossed $300 and that was a huge mistake, especially when you compare it to what I bought.

I take a more humble stance now. This game is already so hard and to me, who is not beholden to any investors, am comfortable letting the price run and sitting with it. The price run has been a nice paper return but the fundamental execution is the signal IMO.


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Thanks for sharing, great work Michael!

Here I have mentioned your post:


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