It all depends how much you hold. If you have a few shares, then no problem.
If you are holding 1 million shares of AAPL like some funds, then it is hard to get out of that position. That is why they have to sell slowly over time.
A test of that is try to go into the penny stock world and load up on a company. It might take one a year to sell the entire lot.
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This is Berkshire’s problem if they buy small or medium cap companies they become the market and can’t get out of the position. When you h e that much money you need to invest huge sums to move the needle so they stick to very liquid and large assets.
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Meaning liquidity becomes indirectly proportional to quantity when large amount of money are involved in any particular investment.
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That does make sense.
Thank you.
I really enjoyed reading this article.
Cheers.
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