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Thread: When to sell

  1. #1
    Advanced Member Valuegrowth's Avatar
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    Default When to sell

    It’s easy to buy stocks, but it’s difficult to sell at the right time. Many investors and traders have different approach when it come to selling. For examples they sell when they meet target and sell everything and trying to buy cheaper at a later date. Some never sell stocks. On top of that there is another type of group in the market. They are those who panic and sell stocks. What is the right thing to do/what would you do?

    In my case, If I realize that I have made a mistake by buying a wrong company or their earning power is going get weak and no sign of generating cash flow in the future I will sell them and will look for better one. The main things for me are low debt, growing earnings and cash generating power in the future. Last but not least, company that I own should create a strong balance sheet. If I don’t see them, I will sell it and will look for a better one. Thank you in advance for your comments and experiences.
    Last edited by Valuegrowth; 30-09-2023 at 01:57 PM.

  2. #2
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    IMHO time to sell overvalued assets now. Hordes of investors and traders have stuck in very over valued assets which include stocks.
    Last edited by Valuegrowth; 30-09-2023 at 02:06 PM.

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    The ideal holding period for a stock as Warren Buffet says is forever. However he does say the reasons to sell are more to do with a fundamental change in the company and less to do with where interest rates go. Issues like geopolitical risks are also important.

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    Thanks. Even WB has made mistakes.

    https://www.investopedia.com/financial-edge/0210/buffetts-biggest-mistakes.aspx#:~:text=Buying%20at%20the%20wrong%20 price,legendary%20annual%20letters%20to%20them.

    https://9to5mac.com/2021/05/02/buffett-mistake-to-sell-aapl/

    "Back in February, Warren Buffett’s Berkshire Hathaway revealed that it sold 9.81 million shares of AAPL at the end of 2020. Speaking during the conglomerate’s annual shareholder meeting this weekend, however, Buffett acknowledged that this decision was “probably a mistake.

    Quote Originally Posted by SBQ View Post
    The ideal holding period for a stock as Warren Buffet says is forever. However he does say the reasons to sell are more to do with a fundamental change in the company and less to do with where interest rates go. Issues like geopolitical risks are also important.

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    https://www.bankrate.com/investing/when-to-sell-stock/

    "While selling stocks during a market downturn might make you feel better temporarily, doing so reactively because stocks are tumbling isnít a good long-term investment strategy. Volatility is a normal part of investing in the stock market, so occasional market selloffs should be expected."


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  9. #9
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    If your invested in an index ETF, it's how much time you're invested in the market, and not how you time when you're out of the market. Being always heavily invested in equities has always done better than maintaining a silly 60/40 bond / equity ratio. Even at high interest rates we see today, fixed term payments rarely outperform the index returns. Take it from a business point of view, no person in business is interested in operating with a 5% profit margin. Over the long term business try to achieve over double digits.

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