IMO both aproaches are okay depending on you personality or style and comfort level. But one should not sell just bcoz of bull mkt. You can not sell just bcoz of little overvaluation, but if there is big over valuation it is good idea to sell. Also you need to look into demand/supply of shares, money, public psychology. Thought it is easier said than done.

Janakbhai,

Everybody makes good calls and bad calls. McMillan was his big call that didn't work. MTimber I don't think was big call. I am not follower of RD and not follower of anybody for that matter, but IMO he does good job. Unlike others who just says buy/hold etc, he at least puts logic, educates chatters and then it is upto an individual to learn and take decisions.

Sitting on cash is a very difficult part of the investing process, but it is,
in  my opinion, as important as buying and selling decisions.
There are times when it is prudent to sit on cash for a while and just DO NOTHING - it is very, very difficult - but nevertheless, it needs to be done.
I have tried this a few times earlier and found that it does help, if one has
the patience to wait till a proper trend emerges.

Unfortunately, in the last 3-4 years, we have never really had any significant time-bound correction which has necessitated this type of a
position as most crashes have rebounded very quickly.

Like Basant, i also learnt pretty much what i know about investing from RD chats, and for that he will always remain my Guru(apart from the fact that only multibaggers till date have been his ideas, so another reason to be grateful to him). In the last few years, i have not used many of his recommendations, but still i participate in the chats as i think there is something i learn each week about investing, even if its not anything tehcnical or about a new idea, it could be something about how other
investors think, etc(in fact, i find the questions side of the chat window even more interesting coz we get to find out what ideas are being looked at). And regarding the other point that Basant made about arrogance, i dont think we can put it down to arrogance, i feel it is his conviction.
After all, he keeps talking about patience and conviction, so obviously he
may go with his views and remain convinced in a story for a little longer than needed, but that is how it works out, for all of us. He is entitled to
hold that conviction in his ideas, as long as he deems necessary.

After all, no matter how strong an idea you have, there will always be someone who dosent agree with it, and if they try to convince you about it, and you dont change your view on it, they could call you as arrogant.

Originally posted by manishdave Everybody makes good calls and bad calls. McMillan was his big call that didn't work. MTimber I don't think was big call. I am not follower of RD and not follower of anybody for that matter, but IMO he does good job. Unlike others who just says buy/hold etc, he at least puts logic, educates chatters and then it is upto an individual to learn and take decisions.   If it is true that he was 50% in cash just bfore crash, credit goes to him. Even if he doesn't turn bullish, IMO he must be bargain hunting in crash and would not hold all cash as ultimately he is investor.