Originally Posted by
Stranger_Danger
born2invest - for what it is worth, and to show you that it takes all types to make a market, I'm currently easing out of my CCP, although I haven't sold any CLH yet and I think there is plenty left in FSA.
Taking CCP as an example, I started buying at 40 cents - although I believe the pre-bust high was something like $14! It does tend to back up the people who say you shouldn't buy and hold forever.
The reasons I'm starting to sell are
(a) I just like to sell things eventually. Selling is the hard part of investing.
(b) Debt collectors tend to blow up eventually. The numbers change incredibly quick when you've valued your ledgers on the basis of achieving one outcome, then you get a very different outcome.
(c) I believe a lot of debt collectors time has been spent collecting from people who could pay, but chose not to, knowing they'd get "a deal" by going through the process. A falling interest rate environment has helped such people.
(d) Debt collecting is way tougher when people simply can't pay, say, because they've lost their 250k mining job in the outback and are now driving a bread truck in the city because the miners aren't hiring.
(e) Debt collecting gets way tougher if we do get a period of housing prices falling, which I do see as a possibility in AU in the next 2 years.
(f) I've made my money and try not to be greedy.
I get why you're buying CCP. Everything looks ok. Balance sheet great, good track record from 2008 onwards etc.
I'm a funny dude. When things look good and everyone is happy, I worry. That is sort of where I'm at with CCP, but I don't feel it is overvalued - I just think we might get some outcomes a bit different to the 2008-2013 period, at some stage in the next year or two.
So there you go - each to their own. There is no one "right" answer when it comes to investing.