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Charts fooled me too often to be considered a reliable means for the future. Arguably, they can provide for a guideline but more often than not made me do very stupid things. It certainly didn't work well enough for me as basis for future decisions.

All a chart says is how people voted for the company in the past. However, if you think about it, it doesn't say anything about the business. I am happy getting into a business with a rate of return of 15% and a margin of safety between 20%-60% on my estimate of intrinsic value. If later on that business is available at an even larger discount, then I am happy. I am not worried about getting in at rock bottom price levels. That is too hard to get right. Once the discount is already there that's enough.

It is worth holding on to sound shares in a business for as long as the business is sound. Making good decisions is something quite difficult. Selling and buying are all decisions. The more decisions I need to make the more likely I am to make mistakes (empirical evidence supports this). Hyperactivity can lead to a lot of bad calls, so I adopted a more sleuth like approach. Besides, businesses don't develop over a few quarters, it often takes several years for them to develop their presence and product line.

Additionally, why should I sell something I had the luck and opportunity at getting at a good discount to intrinsic value? It makes no sense selling it unless somebody quotes a ridiculously high figure. I always find it harder to buy in at increasingly more expensive prices. I find that too difficult. Besides, I don't want to be a slave to the market. As long as the business is great and the people running the show know what they are doing, I know I will get a better return than from a savings account. And that's what matters to my savings and my financial future. As long as the business is generating superior returns then I don't care much what the market thinks.

Warren Buffett once mentioned that one should buy stocks one would be happy to hold if the stock exchanges shut and reopened in 3 years time. I believe I have such a portfolio. I may re-examine some of these holdings in that time but no earlier unless there has been a dramatic change in the business prospects. It will have to be something more specific to the business, not a market crash or a general recession.

In the meantime, I rather look at pictures of naked ladies than zig-zags on a stock chart.