Fairly early yesterday I sold some BRK-B and some VASGX (fund of funds, stock and US heavy globally diversified index). They were about 5-6% and 14.5% off of their peaks respectively. I was late selling the VASGX, and hampered by the sale only occurring at the closing price yesterday, but feel pretty good about the BRK sale. I kept the vast majority that I owned of both securities, but sold enough to make a difference to my portfolio returns if it pans out.

The plan is to pivot to DFSV (US small cap value - SCV) after the major bottom indicator has fired a cluster of times, because SCV is already well below average valuation, having peaked last year at only a bit over average and being down ~25% at this point.

There is some research indicating a lasting advantage in return for small cap and value stocks, on average. I have some level of belief in that, since it squares with my knowledge of how behavioral economics interacts with the stock market. So, buying SCV in depths of a major bear market sell-off is a good play, and I don't have to worry about company specific risk, which is good because I don't have a very good record of picking stocks.

Berkshire Hathaway FAQ

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