1) Charlie says that any time you have a situation where your money is compounding, you would be a fool to interrupt it.

There is a difference between completely selling out of a position and selling a bit to reduce dependence on a single business over which the investor has no operational control. Adjusting portfolio weights is just prudent risk management in my view. It is no different to what Buffett did with Apple when he took advantage of high prices to substantially reduce the holding which had grown to 50% of the public equity portfolio. It still remains Berkshire's largest holding. Buffett has expressed regret that he didn't act similarly when Coke was very richly valued in the 1990s as well.
In my case Berkshire is still 33% of my portfolio but I find the rational way to act is to take occasional action when market conditions are favourable and dial the position size up or down. That is not interrupting compounding and indeed may be a way to improve the compounding characteristics of the portfolio as whole.