The Tom Engle (TMF1000) Approach
A strategic investment approach to portfolio-building articulated, practiced, and evangelized by long-time TMF active staffer Tom Engle (TMF1000).
Tom Engle (TMF1000) has built up a wonderful following in Fooldom, appreciated in particular by long-term oriented members of Motley Fool premium services. Members typically use the advisory service universes for stock selection; the Tom Engle (TMF1000) Approach helps members then orient those picks into winning portfolios for the long haul.
A short summary of some of the TMF1000 Approach's tenets:
1) purchase stocks in increments -- typically building to a full position in 1/3 lots -- this is often referred to as buying in thirds
2) when you feel a stock has reached or exceeded fair value pare back some of your holding in it by selling some portion of it to realize gains
3) do not sell completely out of the stock unless there is something fundamentally changed about its business with which you are not comfortable -- examples may include restated earnings, change of ownership/executive management, and negative changes in debt or cash flow.