might be 52.5 tomorrow though ;)
signs of deep value you know
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On behalf of OCA I would like to thank THL for its diversionary work yesterday. Well done.
When to act on it is whenever it presents a better forward return than any of your other current investments.
For example I sold a small amount of OCA at 79c a little while back for STLA at $19 a share.
Then recently again I sold STLA at $24 to buy more OCA at 58c.
Churning is great :t_up:
We can get into the semantics of what trading is, but what I did is simply allocating capital in my portfolio towards the best investments. As the price of a stock changes, so does the forward return.
Buffett explains it here:
"It is extremely improbable that 20 stocks selected from say, 3000 choices are going to prove to be the optimum portfolio both now and a year from now at the entirely different prices (both for the selections and the alternatives prevailing at a later date. If our objective is to produce the maximum after-tax compound rate, we simply have to own the most attractive securities obtainable at current prices. And, with 3,000 rather rapidly shifting variables, this must mean change (hopefully “tax-generating” change)."
Berkshire doesn't churn their portfolio very much anymore, because they are too large, but Buffett in the partnership days would churn his portfolio a lot (and I'm sure even more so prior to the partnership days).
It was a tongue in cheek comment.
Either way churn or whatever you want to call it is better than doubling or tripling down etc.
I have seen so many people lose their shirt and get fixated on a stock because they lose perspective and have the mentality of one day it will come good or it owes me etc.
I haven't really seen anything from OCA management that proves to me they are capable of turning this ship around. New CEO so perhaps that will change things.
Otherwise OCA is at the whims of the property market & the economy, I.e. the macro.
All the best.