A Framework for Selling a Stock
Written by Greg Speicher on October 28, 2010
Determining a good strategy for when to sell a stock is both important and difficult. In simple terms, your returns are going to come from two primary sources:
1) the reappraisal of an undervalued holding to its intrinsic value and
2) growth in intrinsic value.
Many investors sell their holdings if the price appreciates to fair value. Others, like Buffett, Russo, Greenberg, etc. hold their stocks for the long-term and look for gains from growth in intrinsic value.
Both of these approaches work and have generated a great deal of wealth.
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Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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