Perception Writer 0224 10 06 59 PM you

Perception Writer 0224 (10: 06: 59 PM): you are taking huge risks Buying growing companies at freebie prices is perceived to be very risky.

Kinds of Risk Mostly undefinable: Good Risk – low downside, large upside Bad Risk - (if it’s not good, it’s bad) Definable Risk - casino No Risk – driving 100 mph into a wall.

Sell Strategy Sell a stock if you have something better to own. Cash may be better than your stocks. If hedge funds are panic selling, cut out first --- ask questions later; before they clobber you. Get back in later at a lower price.

I’m ruthless • I’ll sell out of anything, at any time, for any reason. Or at least that is how it appears. • 1. Business fundamentals change. • 2. Bad news comes out that changes my perception of the company. • 3. To buy something better. • 4. I feel like there is downside risk and I can buy back cheaper.

Bad Logic • Playing with the “House’s Money” • Margining up on things you don’t understanding • Diversifying across average investments and expecting to be better than average • Going long in a bear market • Going short in a bull market