Tsai Capital Corporation

Selling Discipline
We recognize that the fundamentals behind a company’s success can change and that business values are inherently dynamic. Disciplined selling is therefore critical.

We sell an investment when:

• a security becomes clearly overvalued

•
the business fundamentals deteriorate or are expected to deteriorate

•
the sale and reinvestment of sale proceeds are estimated to result in a substantially greater future value

•
our analysis was flawed