Paul, your sell decision is not based on any metric, so I labeled it instinct. Your own words for selling decision have been posted many times. Here's an example:
Message 28464661
On Graham's strategy to sell after two years, there are many references. Here's one that's easy to post and verify, from THE GRAHAM INVESTOR website:
http://www.grahaminvestor.com/2010/03/05/on-selling-some-thoughts-on-when-to-fold-em/
"Ben Graham variously suggests keeping stocks for 2 years, and/or selling 50% of a holding." (Please don't get hung up on the and/or)
Graham bought stocks that were undevalued based on his metrics. Logically if the stock gained in price, or as you put it, the P catches up to the E, then why would Graham hold on?
Buying and Selling is strictly based on what the stock is selling for below or above fair value
insomniacinvestors.com
From the same website, maybe you have seen this before, An Interview with Mr. Market. Great read:
grahaminvestor.com
Here's another link on Graham/When to sell:
When to Sell? In general, Ben Graham didn’t like to take any chances holding stocks that were valued at or above intrinsic value. Therefore he recommended selling a stock after about 1 year or when it appreciates 50%, whichever comes first.
accesswealthstrategies.com |
