OTHER BUYING AND SELLING ADVICE - SOME RULES THAT WE LIKE TO FOLLOW

At Guild we like to buy the dips.  When you or your money manager has identified a stock that you want to own, the company has tailwinds, good fundamentals, and the overall market is not in a general decline, a good strategy is to buy during periods of weakness.

If a stock you own moves up a lot, it is OK to sell some and trade around a core position.  If it doubles, why not sell a chunk, or maybe all?  We recommend that investors not be afraid to sell a winner.

We also recommend that investors not be afraid to sell a loser.  Remember, loss cutting is important to performance.  Once a major disappointment occurs, we believe that the first markdown is often the least markdown.  If the fundamentals deteriorate, we recommend that investors sell completely and immediately.

Continue to re-evaluate the company and its price versus the historical valuation the company has enjoyed.  We look to sell when it gets to high historical valuations, or in a strong market, as it gets to the upper end of historical band of valuation.  We often, purchase more on dips if the fundamentals remain intact.  Keep the position within a predetermined position of total portfolio appropriate for the company; usually 5% for a full position, and 2½% for half position.
 
HOW TO HANDLE DISAPPOINTMENTS
 
If a stock has a negative company-changing event, we think investors are wise to sell immediately, and sell the entire position!

If the problem that occurs is of a temporary nature, and may take one or two quarters to work out, we might use this as an opportunity to buy more.  On the decline, or after the decline has ended and the stock is building a base, we may buy for our longer term investors, anticipating the stock to resume its upward move.

MARKETS ARE ALWAYS CHANGING DUE TO CHANGES IN MANY VARIABLES INCLUDING BUT NOT LIMITED TO POLITICAL, ECONOMIC AND SOCIAL EVENTS ON A GLOBAL SCALE.   

Demographic trends and financial activities of market participants are a couple of an unending array of other considerations that investors are wise to be aware of.

It is important to be alert to changes.  We try to stay on top of the developments by reading the media outlined above.