Tyler Crowe

I've been having trouble executing or refining the strategy of letting the winners run or just buying and holding through the ups and downs in the market.

I'll take two examples to showcase his dilemma.

I'm long-term bullish on two companies, Axon Enterprises, AXON, and Sterling Infrastructure, STRL.

Both of them I've trimmed because I felt the valuation was too high.

One I got right, one I probably got wrong.

At times, valuation seems too high and feel like taking the gains, but you can lose the long run of these stocks and never get a re-entry if they continue to win.

So any thoughts on how you guys like to manage this?

Cheers.

Matt, let's start with you.

Yeah, I mean, there is no great answer to this because if everyone knew exactly how to execute the letting your winners run strategy, I think we'd all be incredibly good at this and everyone would be rich and nobody would have to worry about asking questions like this.

But this is really that intersection of the emotional aspect versus the rational aspect because valuation does have this very emotional component for it.

How much am I willing to pay for growth?

Or how much am I willing to pay for value?

I mean, valuation, regardless the type of stock, is going to come into it somewhere or the other.

Sometimes valuation is less of a concern, depending on the company.

But it always is in the back of your mind.

You see a large price gain, and you're like, wow, can I really do much better?

And to both Matt and Lou's point, it really depends.

It depends on the growth trajectory of the business.

whether they can maintain it for a long period of time and sustain it for years to come.