Value Investing Dhandho style -> Selling

When buying and selling stock think in at least a 3 year time frame. Pabrai wrote

A critical rule of chakravyuh traversal is that any stock that you buy cannot be sold at a loss within two to three years of buying it unless you can say with a high degree of certainty that current intrinsic value is less than the current price the market is offering.
Whenever I make investments, I assume that the gap is highly likely to close in three years or less. My own experience as a professional investor over the past seven years has been that the vast majority of gaps close in under 18 months.

I think of this as running the gauntlet.

See also ValueMachinesFund (Dutch) www.valuemachinesfund.nl

Comments, questions or E-mails welcome: ajbrenninkmeijer (a) gmail.com