Thursday, June 15, 2017

Sold my position in Fairfax India Holdings due to valuation

Fairfax India Holdings

Let me be clear on this sale. I still like India long term. I still like Fairfax India long term. However, valuation matters and this stock is extremely overbought. That doesn't mean the stock cant go higher but when a stock is this high above both its 50 and 200 day moving averages. RSI is also showing extremely overbought. I will keep an eye on it and when it pulls back, which it will, I will look to re-enter the stock. In the mean time I will pocket a 44% gain.

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