There is a real tension between letting winners run and holding on to a stock because it has done well in the past and hoping it will continue to do so.
Some (a few) stocks will continue to grow for years and years, while others hit a plateau and stall or retreat.
If you are a buy and hold investor, your goal is to find stocks that you can stay with for a long time.
Blinded
Just be careful your long-term strategy and love of a particular stock don’t blind you to the fact that it is time to move on to another investment.This is not about loyalty. It’s about what works for your portfolio and a stock that’s going nowhere (or worse, going backward) has no place in it.
Unfortunately, knowing when to sell is not always a clear decision. Is this a temporary downturn or has the stock gone from growth to stagnation? If you take your money out now, are you going to miss a big move in the future?
No Easy Answers
There are no easy answers to these questions, but don’t let an emotional attachment to the stock cloud the decision making even more.You might want to look at a two-part series on When to Sell a Stock for help in making your decision.
