Could you explain your notion of selling and directly buying again, in particular at ATH?
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@jkb92 I think there was already a discussion about this from him, and I didn't get it back then either...
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@jkb92 For me, this is primarily a matter of risk management. When $KO reached my pre-set profit target, the position was sold in accordance with my rules. This allowed me to realize a profit of just under 35%.
The fact that I subsequently bought back in simply means that, in my view, Coca-Cola remains a high-quality company with a sound long-term investment thesis. That’s why I’m starting a new cycle with a correspondingly small position size and new entry and exit levels.
The goal of my strategy is not to predict tops or bottoms, but to systematically lock in profits, free up capital, and at the same time remain invested in high-quality companies.
The fact that I subsequently bought back in simply means that, in my view, Coca-Cola remains a high-quality company with a sound long-term investment thesis. That’s why I’m starting a new cycle with a correspondingly small position size and new entry and exit levels.
The goal of my strategy is not to predict tops or bottoms, but to systematically lock in profits, free up capital, and at the same time remain invested in high-quality companies.
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@MikeUpegui But then why don't you just sell off part of your holdings?
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@MikeUpegui And the bottom line of the strategy is to interrupt compound interest? I’m not afraid of taxes like some yield junkies, but I don’t really get it in this context either. If you buy the security right back and plan to hold it forever, isn’t it really inappropriate or unnecessary to pay taxes?
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@MikeUpegui taxes + speads on buy/sell, there is no clear win here, I tried to understand your explanation, but if you plan to buy anyways you could just check monthly/quarterly your sell orders and when you are close, you can make you mind and cancel sell order and set new target if you still wanna keep the stock, no need to sell and buy and expose yourself for taxes and speads.
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@MikeUpegui I don't get that. That triggers a tax payment every time and interrupts the compounding 🥲
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@MikeUpegui I don't get that. That triggers a tax payment every time and interrupts the compounding 🥲
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