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Meddling with long-term investments

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Anyone care to put in their 2 cents worth? I have some long term investments in Allan Gray Equities portfolio that has been doing well lately. Seems to me we are due for a pull-back, and I was wondering at the wisdom of switching to a less volatile portfolio for a while. That is exactly what Allan Gray tells you not to do, of course, and amounts to "Trading with your Long-terms", but such a temptation!
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7 REPLIES 7
SimonPB
Valued Contributor
an for once they are right .. why are you suddenly trading with your long term ?? and the market could steam ahead for who knows how long .. or not, either way leave your long term ..
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Not applicable
Thanks Simon. Sometimes we need a klap on the back of the head.
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Farmer brown, all I can say, is that winners tend to stay winners. They might pull back, but they shouldn't crash. Patience, in the investment game, is the true virtue, and will entitle you to what Warren Buffet calls the miracle of compound interest. In this case, the miracle of compound growth.
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Blik
Super Contributor
For the first time in 9 years, my AG portfolio has pulled ahead of the JSE as a benchmark. I think I'll be keeping it as is.
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kwagga
Super Contributor
So after you switch, at what point do you switch back ? The market could correct for a month, a week, a few days, and the continue on it's bull trend. Better to just leave your long term investments alone, unless you're planning to retire in three years or less.
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ms_moneybags
Contributor
Hi Dont give into temptation .Stay with Uncle Allan .Remember the beauty of compound growth and if it is long term dont meddle with it .
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partridge
Super Contributor
Simon and the stripey horse are right. Put your feet up and watch the sunset on your farm. Always ask the most obvious questions. Such as : If your managers are managing the portfolio within their mandate - and doing so without undue risk( which value is deeply imbedded in the AG culture ) then you have nothing to complain or worry about. Being contrarian and deep value boyos their performance is always going to be lumpy - BUT CUMULATIVELY these lads will take some beating - moreover "lumpiness" should not be a problem to a long term investor - in fact someone just like you!
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