DOM – Domino’s Pizza – sold

I bought DOM back in March because I thought it was a very good company. It was a company that I planned to own for a long time. In the 7 months since I’ve owned it, the share price has risen 37%. I never expected this to happen, and I was lucky, buying in at the right time just as it was about to have its fantastic run.

I’m reminded of Jim Rogers saying: everyone knows I’m the world’s worst trader, all I know is that when things go parabolic, you have to sell.

So I made a deal with myself. If the PE was over 30, I’d sell. It was. And I did.

DOM’s recent move was unprecedented, as you can see from the chart below:

chart

When the shares peaked in 2011, it took over two years to regain its level. When they peaked in 2013, it was over one-and-a-half years. I don’t particularly want that to happen to me.

Sometimes I think you just have to make the calls you don’t want to make.

1085p

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About mcturra2000

Computer programmer living in Scotland.
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