Historical highs

[sponono]

I have been watching Coronation, PNR Foods and Capitec Bank hit historical highs every month and I have been kicking myself. Ciplamed has hit a historical high and this time I'm not sitting and watching. Staff it!

[john_1]

buy winners..and keep buying them as long as they are winning...now here is a man who understands how to make money from the market!

[SimonPB]

yip, we shouldn't be scared of new highs .. they are a very positive sign and buying high and selling higher is a perfectly profitable strategy ..

[louisg]

Hi Simon. "Buy high sell higher" sounds like the logical approach to trading, however would/do you use the same approach to your long term investing strategy?

[#5]

louisg would you rather be holding Sasol and Grindrod - or Naspers, Shoprite and Aspen right now?

[SimonPB]

in my long term portfolio (measured in decades) .. no
in my midterm which can be measured in many years .. yes I do .. CPI most recent example .. bought it a day after a new all time high, that was in low 40's ..

[louisg]

I pursue a long term high dividend strategy, so none of the above right now.

[louisg]

What would/is your exit/sell strategy in such a situation.ie Capitec

[SimonPB]

when I bought I had a list of fundamental issues that triggered the buy (and some are metrics, like customer growth) .. when they change I will exit ..

[sponono]

APN hits an all time high. I'm licking my lips.

[louisg]

Fantastic, good on you.

[Werner_1]

I only problem i see with buying at all time highs (dont get me wrong, i did this many times as well - CPI and APN were my examples - i still hold both) is that if you buy a company that ran like anything and at the height of the market, think 2007, and the market crashes, you just bought the most expensive share you could find and if the company is not fundamentally sound it could fall a long way, if you buy these companies at a good margin of safety you're forced to buy on the dips and the drops are way less. Then again, CPI triggered on my model as good value including my Margin of safety even though it was quite high, 2 years ago it triggered and wasnt that cheap, but it offered exceptional value! thats what i look for, so i might easily buy at all time highs, but that alone will not determine my entry.

[#13]

if you are buying to hold, then sure, you want your fundamentals to come into play. If you are more short term though, then your focus is on stocks that are moving, because short termers don't make money from stocks that are flat. So you look for the most active and hottest shares and those are the ones that constitute your trading portfolio. And all time highs are, almost by definition, the most active.