| There are many principals of the
Buffett-Graham method that you should have learned from reading the appropriate books. We
won't list them here.
Concentrate your holdings in the best companies. We modify that by not owning more than 5% of our portfolio in any one company. This is because we cannot study and know the management or quality of the company as well as someone with huge resources. This was suggested by Bob Brinker.
Buffett would keep the stock until the intrinsic value discount % is more than 0 or a better investment is found.
Check every day to see if new quarterly reports have been issued to the SEC. If so, enter the new data to the cells for that company.
You are not protected if the values drop before they are posted or you have access to them. It takes about a week for www.finance.yahoo.com to post the SEC reports. That puts you at a disadvantage to the big analysis companies.You are not protected in the case of a "Black Swan event" such as a panic, disaster, or "flash crash" where all company profits or prices drop at once.
For these reasons, some investors sell if the price drops 10-15% below what they paid for it.
If you disagree with the passing percentages, feel free to use your own.
You can increase profits by selling calls against the stocks you own. Our coming option calculator will show the optimum choice.