Jeff Fischer recently noted that the Rule Breaker selling strategy leaves a little to be desired. He also asked you, our community, for suggestions for the strategy and portfolio. Our strategies have attributed different degrees of importance to valuation. Still, much valuation-oriented content is peppered throughout our site. I am torn when considering valuation and Rule Breaking.
Price clearly matters.
The return on your money unavoidably depends on the price you paid for the stock. Two smart people can easily come to different conclusions on any given stock's proper valuation. Compounding the matter is the fact that Rule Breaker companies tend to be growing very quickly and their future performance is uncertain and hard to estimate. Overall, it's clear that mistakes have been made in our Rule Breaker Portfolio. And they'll continue to be made.