Two crucial behavioural characteristics of successful long-term investing are:

1. Be patient when others are panicking

2. Know when to cut your losses

These seemingly basic principles can make or break your portfolio.

Johnson Service Group shares suffered a brutal sell-off in early-March and we have remained calm and patiently waited for a bounce.

This bounce has taken prices back to their short-term mean (20-day moving average) and during the last week we have seen volatility start to contract, making the shares vulnerable to second leg lower.

Communication regarding the impact of the pandemic from the firm has been incredibly quiet compared to other stocks within our portfolio and this silence speaks volumes. We believe the timing is right to close our position.