Kingsmen Creatives

[mightyreds]

Thanks for your input guys. While I see the rationale of investing in a company with a long term view of 5-10 years, and yes I do that as well, I think it's good to have a cautious approach when it comes to the more illiquid stocks.

MW, I have been reading some of your articles on your blog and you now have this 'buy and monitor' approach in addition to 'buy and hold' strategy. I agree fully with that and I monitor all my companies from quarter to quarter. What I have learnt is that companies business models can go wrong - be it a micro or macro issue involving the entire industry. So when that happens, we need to exit before the 5-10 year horizon and it becomes tricky if a stock is illiquid. Kingsmen is one of them. MTQ and Vicom are a couple of others. Great balance sheets and consistent earnings. Unless of course we're absolutely sure that a company will continually do well for the next 10 years with no hiccups whatsoever. I think that's a bit hard to achieve and predict. For that same reason, big funds avoid small caps and illiquid trading volumes.

Just wondering, what proportion of your portfolio is apportioned to illiquid stocks?