Have a good sell discipline.
There are dozens of books that tell the stories of value investors finding undervalued stocks to buy. There are almost none that explain when to sell.
This forgotten aspect of value investing is one of the major differences among value investors. Should you buy more when a stock goes down? Should you let your winners ride, or should trim your winners, or perhaps even sell the entire position and move on to another stock? It is impossible to outline hard and fast rules.
Our model portfolio will be a real time example of using a practical sell discipline.
|<< Key Principle No. 14||Key Principle No. 16 >>|