Shravan Paul: U leverage the fucker by going long two year callsOr margining assuming the interest rate party continues
Allen Kaplun: If there are no better opportunities out there and you desire to put your money to work, you buy more.
Ng Cheekoon: It’s sell half, recover capital and keep the other half for infinite returns.
Lukas Savickas: Sell at 80 – 90% range of IV.
Michael Wei: Typically no. The risk has increased significantly with the higher price, considering the estimate of intrinsic value could be overly optimistic.
Anshuman Nanda: It depends on the reason- the strong often get stronger : because of a beat-and-raise for instance. This leads to a revision of fair value.
Patrick Leduc: Check your fundamentals and toss out your emotions. Chances are you’re in love with your good work and can’t accept that this party is over.
Pablo Huang: Back to your required rate of return for this stock and assess other alternative opportunity
Mike Chen: that depends on new calculation, if cash flow in the future is still up, buy it, if not sell it
Nitiin A Khandkar: Buy more, unless your investment thesis has changed for the worse. Eventually, the stock will reach its fair value and you can sell.
Jon Lee: Easy…flip a coin to decide
Michael Morse: No…you start trimming. If it falls…you’ll feel confident paying up for more (but really your buying a dip).
John Grieco: As said before if the reason you bought the stock in the first place hasn’t changed, it will still be a buying opportunity. I have long term stocks I feel safe with so only check on an annual basis like facebook otherwise you would want to keep your eye on something like gopro quarterly of even more often. Depends on your view of how the valuation was and is now. Good luck! Ps. Unfortunately it also depends what sector/industry its in because if the market were to sell off a bit it may be affected just because which would possible create an even better buying opportunity, dollar cost averaging with a share amount goal in mind is a powerful thing!
Allen Kaplun: IMHO I think its also better to evaluate the entire universe. Just because you own the stock should not be a reason for you to buy more of it so the fact that you bought it at $20 is irrelevant. The question becomes is it still cheap at $40 and is it the best investment choice at the time.
John Grieco: I would say thats true for investing in an index or mutual funds but I cant agree for just an individual stock unless its a commodity or something like that. You are basically repeating the original post’s question.
Allen Kaplun: John Grieco Actually that same approach can be bad for funds as you may end up overlapping. My answer is simply this: you need to compare the asset to the rest of the universe to see if its the best choice for you. Suppose its one of the few assets that appreciated but there is a similar $70 asset that you can buy for $30. Why buy again just because you bought before?
John Grieco: Im really lost to what you are talking about, not sure what Mars has to do with stocks…
Vikas Garg: Every entry has to be done on individual merits. Adding coz it has run up isn’t a value investor’s logic. Or is it?
Allen Kaplun: Not unless your goal is to control and transform the company.
Michael Morse: No…trim some and go look for something else on sale.
Justin Swierczek: Which stock? If you believe nothing has changed and you don’t have a better idea then yes. However there is always the safety of the issue question. Ensure there is little chance of bankruptcy if you continue to concentrate in it.
Greg Williamson: It depends on how confident you are in the calculations.
Michael Morse: Well..i was watching Leon Cooperman made a bet back in 2009 and rode 50 cents up to 9 bucks before he took his first profits off the table. I took out mine at $5.
Michael Morse: Of course he has been playing in this game longer than I, so…i was actually scared about giving back gains.
Punit Jain: It hasn’t run up to 40 because of your calculations. Recheck the fundamentals, thesis and execution before your next Investment decision
Kumar Mangalam Lamboria: Depending on your original margin of safety,your conviction in the fundamentals and conducive environment i do not see any reason not to invest more into it. If sure of a short term upmove then put a stop loss for the new investment at $40. All you will lose is the brokerage but will have the chance to make 30$ per stock and more if the company is sound.
Allen Kaplun: We seem to have all sorts of opinions here. Look, if your calculations show that its still a $70 company and its the best investment you can find, but it. Unless you were considering taking over the company or risk obligating yourself to an unwanted SEC filing, your prior accumulation history is irrelevant.