28. What criteria does your firm use to determine that there is sufficient liquidity for the firm’s total position in a stock? Is there a maximum number of days average trading volume and/or “days to sell” that the portfolio will hold in a particular stock?

We won’t buy over 5% of a company’s stock. We like to keep our holdings below one month (20 days) trading volume. But sometimes the market changes, and “sufficient liquidity” becomes an oxymoron. For example, when the market crashed in October 1987, the only company we could get a decent bid on was Phillip Morris. Everything else was illiquid. Everything. In 2008, there was over a trillion dollars of forced selling which occurred in 3 months; and once again, everything was illiquid.