VALUE: You should sell when the stock price is high in relation to its intrinsic value. One reason to sell is the price of the stock in relation to alternatives available, including holding cash. Buffett sold PetroChina for this reason.
MANAGEMENT: He sold the Disney holding because he did not seem to have as much confidence in the new management as he had in the old management. Once again, this shows that quality of management is very important to hi.
Finally, I liked the cockroach theory of earnings manipulation or management behaviour that Buffett described.
"When you see any sign of improper management behaviour or questionable numbers that make you uncomfortable with the company, you should sell the stock because if you are picking up on one problem from the outside, there is likely more wrong with the company on the inside. There is rarely just one cockroach in the kitchen."
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