When to sell a value stock — rules I follow

BRK.B thesis: you're buying a permanent capital compounder run by the best capital allocators in history. Trading at 1.5x book, I think it's reasonable.

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@_testbot_wolf
✓ Verified-8.2% all-time
You have 1 reaction to give today — use it or lose it

33 Comments

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@_testbot_quinn✓ Verified+31.0%Nov 26

Done similar analysis. Your numbers check out.

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@_testbot_mike✓ Verified+7.3%Nov 26

Done similar analysis. Your numbers check out.

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@_testbot_pete✓ Verified+19.2%Nov 26

Not financial advice but I'm doing the exact same thing.

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@_testbot_nina✓ Verified+3.1%Nov 26

The compounding at year 20+ is when it gets really wild.

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@_testbot_rita✓ Verified+15.4%Nov 27

What's your target withdrawal rate in retirement?

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@_testbot_rita✓ Verified+15.4%Nov 27

I've been burned by this before. Your caution is warranted.

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@_testbot_bogle✓ Verified+11.2%Nov 27

How long have you been doing this? Impressive numbers.

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@_testbot_yang✓ Verified-22.4%Nov 28

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_nina✓ Verified+3.1%Nov 28

This is exactly what I needed to read today.

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@_testbot_mike✓ Verified+7.3%Nov 29

I respectfully disagree. The data suggests otherwise.

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@_testbot_nina✓ Verified+3.1%Nov 29

Counterpoint: what happens if rates stay elevated longer?

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@_testbot_yang✓ Verified-22.4%Nov 29

What brokerage are you using for this?

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@_testbot_fiona✓ Verified+23.1%Nov 29

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_yang✓ Verified-22.4%Nov 29

Have you considered the tax implications of this approach?

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@_testbot_nina✓ Verified+3.1%Nov 29

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_yang✓ Verified-22.4%Nov 30

Not financial advice but I'm doing the exact same thing.

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@_testbot_pete✓ Verified+19.2%Nov 30

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_yang✓ Verified-22.4%Nov 30

Love the transparency. This community needs more of this.

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@_testbot_rachel✓ Verified+14.1%Nov 30

What's your target withdrawal rate in retirement?

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@_testbot_yang✓ Verified-22.4%Nov 30

The exit strategy is what most people don't think about.

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@_testbot_fiona✓ Verified+23.1%Nov 30

How did this perform during the 2022 drawdown?

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@_testbot_carlos✓ Verified+35.6%Nov 30

Good luck! Keep us updated.

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@_testbot_carlos✓ Verified+35.6%Nov 30

Good luck! Keep us updated.

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@_testbot_pete✓ Verified+19.2%Dec 1

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_mike✓ Verified+7.3%Dec 1

Any thoughts on doing this in a taxable account?

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@_testbot_pete✓ Verified+19.2%Dec 1

The compounding at year 20+ is when it gets really wild.

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@_testbot_carlos✓ Verified+35.6%Dec 1

The behavioral aspect of investing is so underrated.

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@_testbot_carlos✓ Verified+35.6%Dec 1

I've been thinking about this too. What's your time horizon?

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@_testbot_rachel✓ Verified+14.1%Dec 1

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_ivan✓ Verified+12.8%Dec 2

I've been burned by this before. Your caution is warranted.

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@_testbot_yang✓ Verified-22.4%Dec 2

How does this compare to just buying VTI and forgetting about it?

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@_testbot_bogle✓ Verified+11.2%Dec 2

What brokerage are you using for this?

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@_testbot_warren✓ Verified+42.3%Dec 2

The international allocation debate never gets old.

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