THE PORTFOLIO REVIEW

"If you know the stock doesn't know you own it, you are ahead of the game. You are ahead because you can change your mind and your actions without regard to what you did or thought yesterday; as you can start out with no preconceived notions. Every day is a new day, providing a new set of continuously measurable options. You can live up to all those old market saws, you can cut your losses and let your profits run, and it doesn't even make your scar tissue itch because, being selfless, you are unscarred." Adam Smith, The Money Game

"In Wall Street the curtain goes up every day at ten o'clock on a new show." Adam Smith, The Money Game

"Failure to decide is, in effect, a decision. If you would not care to buy each holding in your portfolio each day, you should sell it (barring tax considerations)." Bennett Goodspeed

"Our portfolio is 'made fresh daily' and we will aggressively recycle capital from names that have fully played out to more opportunistic situations to reduce risk and sow the seeds for future productive harvests." Larry Robbins

“It has to meet the test every day: ‘If we didn't own it, would we buy it today?’ And if the answer is no, we say maybe we should get out.” James Dinan

"I look at each trade in my book every day and ask myself the question ‘Would I enter this trade today at this price?’ If the answer is ‘no’, then the trade is gone. Most of the trades I do stop myself out of, I stop out because of time rather than because of loss. If I really love the trade and get strongly positioned, and then a month later, it still hasn’t moved, alarm bells start ringing in my head. I think to myself, that is a really great idea you have, but the market is just not playing ball’'.” Michael Platt

“Don’t be too concerned about where you got into a position. The only relevant question is whether you are bullish or bearish on the position that day. Always think of your entry point as last night’s close.” Paul Tudor Jones

“The proper perspective on an investment is not what you have made so far, but rather the risk and reward ratio at any given point. The price you paid for a stock is irrelevant.” Leon Levy

“My view is that cost to bought the stock is irrelevant. Somebody asked me the other day ‘what’s your price of stock X?’ I said, ‘Look, I don’t know.’ It is not relevant because the moment you think about, oh, I bought it at this price, you’re anchoring to that.’ Rajiv Jain

"The price of which a stock was originally purchased or shorted should be irrelevant to any decision regarding the fate of that holding." Lee Ainslie

“The most important rule of trading is to play great defence, not great offense. Every day I assume every position I have is wrong. I know where my stop points are going to be . I do that so I can define my maximum possible drawdown. Hopefully, I spend the rest of the day enjoying positions that are going in my direction. If they are going against me, then I have a game plan for getting out.” Paul Tudor Jones

“The ‘no holds’ concept simply reflects the approach that every investment should represent a very compelling risk/reward opportunity from current prices, and if that’s not the case then capital should be redeployed into positions that are viewed as very compelling at current prices'.” Lee Ainslie

"I tried to view the portfolio fresh every day." Michael Steinhardt

"We do evaluate each position every day to consider whether the current position size is the most effective use of capital." Lee Ainslie

"Each day forced us to look ourselves in the mirror and adjust whether we were persevering with companies for which we had not paid a lot, even if some didn't measure up. Our task, which was never easy, was to try and discern those that were not fulfilling our expectations currently and would not do so on the near horizon." John Neff

"Everyday is also fresh and you have to ask yourself if you came to the situation fresh today would you still be in the position and what would the right size be." Marc Cohodes

"Once a position goes on the sheet, it has to earn the right to stay on the sheet almost on a daily basis.” James Dinan

"Sometimes I suggest to my partners that we each go home, reflect as though we had nothing but cash, and come in just as we did on that Sunday before we started with a fresh portfolio and a new exposure position. It's a great discipline to pretend you just got the money and have to build a brand new portfolio.... When you are working with an existing portfolio and reshaping it there are unrecognised, subconscious, emotional hang-ups that block you from impartial, cold-blooded investment actions like selling. Your baggage is what you already own, and it gets in the way of excellence." Barton Biggs

"I have always believed that every day you choose to hold an asset, you are choosing to buy it." Sam Zell

“A simple example would be, you buy a stock and you think very highly of the company and management, and things do not turn out exactly as hoped for. Sometimes it’s hard to convince yourself you’ve made a mistake and you have to move. You have to be able to almost look at any company or a situation with fresh new eyes, so without biases, and that’s not easy to do. I force myself sometimes to, I call it a white paper, so I took… It’s not a real paper, but if I would build the portfolio again, from scratch, would I buy all the same securities, and sometimes it helps to see well if there are one or two that you’re not really sure, well perhaps there’s a good reason for that reaction and to look into it.” Francois Rochon