Post #12033 by rayvt on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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The issue is if you sell them not only at what price do you buy back but HOW MUCH do you buy back. Many have trouble once they've sold buying back AS MUCH as they previously had as they are buying at what's most likely a higher price than was in the shares that they previously sold.

I know what mostly happens.

You sell XXX at an "overvalued" high.
Sit in cash for a short while.
Oh, look! YYY looks to be a good buy, and I have all that money sitting in cash doing nothing, so let's buy YYY.
... time passes...
Ah-ha, XXX just went down so time to buy it.
Um, using what to pay for it? All my money is tied up in other stocks and I don't really want to sell any of them.

Other times, what happens is:
You sell XXX at an "overvalued" high.
Sit in cash for a short while.
Oh, crap! That XXX I sold at 350 is now 400. Guess it wasn't an overvalued high after all.

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