Beazley Portfolio recovery…

Posted: November 29, 2013 in Beazley, Portfolio

While I undoubtedly made a large error in not using my stop-loss on this share. I am mightily relieved to see that my judgement (luck) paid off on this occasion and Beazley (BEZ:LN) is now showing in my portfolio as a net gain of 2-3% now, from a previous loss of around 15% at  maximum.

Given that the business seems to be largely following expectations and the outlook hasn’t changed significantly my confidence continues. And while I will reset my stop-loss (and stick to it this time) I will happily continue to hold.

My lessons learned on this share, is that I should have sold-out as it fell (used my stop-loss). And brought myself back in when the share had stabilised and started to gain.  The net gain may be the same, but the exposure to risk I gave my portfolio during the journey would have been considerably less.

And I think it is fair to say that anything that can be done to minimise risks can only be considered a wise practice to follow.

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