Sell Discipline

Turnover

  • 20%-35% in dollar terms.
  • On average, we add and eliminate six holdings per year.

Reasons for Sale of a Position

  • Successful Positions
 Expected Frequency
  • Valuation - company approaches or exceeds fair value.
 30%
  • We identify an idea that is better.
 20%
  • The company is acquired.
 20%
  • Mistakes
  
  • Unforeseen competitive pressures
 15%
  • Poor execution by management
 15%