Please take the following with a pinch of salt. Its probably not suitable for most people and I highly recommend not following any of this without consulting with some professional. The following could be a product of a lot of luck than skill
I look for everything - strong chart, turnaround and change in nature of business - either new products/geographies, new capex, sectoral tailwinds, and more than anything mispricing - this doesn’t just show in charts and there’s no way to figure it out unless you understand the nature of business really well. That’s why most of the businesses I pick are simple - only these I can understand intuitively. So it involves turning a lot of stones and doing a lot of work and has a very, very high rejection rate.
Most of these invariably are classic value buys, with growth triggers that can lead to momentum. So in a way you get value + growth + momentum. Its like potential energy with triggers that can convert it into kinetic energy (momentum). Sell strategy is hard. I try not to sell for the sake of selling, unless there’s a fundamental trigger. I don’t preempt but there are exceptions when there’s a better bet coming along, I switch.
I dont have a separate long-term portfolio, there’s only one portfolio (there are multiple family accounts but I have a unified view and single strategy across them) and 80-90% of it is churned (avg. holding period is ~6 months), as in any rebalancing strategy. I somehow relate a lot to this short poem by Tagore from “stray birds” and this is sort of the philosophy behind the strategy.
do not linger to gather flowers to keep them, but walk on,
for flowers will keep themselves blooming all your way
The 10-20% of the portfolio which isn’t churned are either long-term positions (mostly past winners as trophies of the trade which will probably never be sold) and tracking positions - these are small and if they don’t get scaled within 3 months, they are ejected unceremoniously.
This requires a lot of work on personal front more than any stock picking skills. It requires execution skills, position sizing and risk management. You have to be very patient but also nimble. It requires being on top of most biases - anchoring, endowment, recency, confirmation, euphoria/hubris, self-serving biases (“resulting” as annie duke calls it). It also requires a lot of tools to stay on top of things so you spend minimal effort. More than anything it requires you to not have a large ego and to be honest with yourself.