What would you do if the stock does not move in a designated time frame, would you sell and find something else? Worst case, if the stock goes down, what is your risk tolerance levels.

Time is great friend to good companies. As time passes, good companies will not only survive the temporary setbacks, but will strive and increase its shareholders value. When Mr. Market realises this, it may bid the price of the stock up. How long it takes for Mr. Market to respond is beyond my prediction. We are long-term investors and will wait for the good returns to unfold, between 3 to 5 years. Having said that, we would monitor the underlying fundamental of the companies and reassess the companies from time to time to make sure we have not made mistakes at the first place.

If the stock goes down, we would reassess the companies to make sure its moat is intake and the “events” that cause the stocks to dive are temporary rather than permanent. If we believe that we are right, we would take advantage of the price drop to increase our holdings.

If we made mistakes in judging the companies, and if we found out at later date that the companies are not as sustainable as we thought, we would sell the companies.