Selling off and investing in another "cheap" stock (PREY) sounds great on paper - but when the market crashes, the docile prey will stab you in the stomach with its horns. 

 

I say, take the money off the table and run. And then wait for your time to enter the game again (after X years, not 3 or 4 months)

 

 

Funds will have to show cash as part of the portfolio. Individuals don't need to consider the cash component at all, for calculation of their returns.

If you feel otherwise, just assume that you are a MF portfolio manager and your portfolio size has reduced because of large scale redemptions!  

 

Has anyone really practised it in a big way? I mean fully booked profits and fully sit out for couple of years? I guess it is emotionally quite difficult to do.

 

I plan to have a rule based (div yield at market price) selling , rather than a "analysis of future prospects of the stock" based selling. The "analysis" part is done only during buying, not selling. The problem with using your discretion for selling would be that you will probably never sell a small cap stock that has gone up 4 times, because you will be dreaming of bigger rewards.

 

Because of rule based selling, one will always have some percentage of portfolio in stocks - since all the stocks won't rise up at the same pace. That will keep you interested in stock markets. It's only when you are 90 - 100% in cash, you will feel like doing something stupid.

 

Any idea about Marg ltd., value unlocking in its port subsidary...? Also concern about Adani Enterprise... Although management has given guidance of Rs.1200cr profit this year from Rs.500cr still the stock is not moving...?

 

I always wonder how a tiny company called Marg can build ports, power plants, SEZs etc etc. It's a wait and watch stock, according to me.

 

hee hee.. 2 years back, brokerages were estimating a net profit of Rs. 2000 cr for Adani Enterprises by FY10.