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Non-Tech : How to Sell Stocks

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To: VIXandMore who wrote (11)5/31/2004 1:34:29 AM
From: VIXandMore   of 12
 
Buying Is a Snap. Knowing When to Sell Is Tough.

nytimes.com (requires free registration)

Provocative NY Times article from today's paper

Make sure to click on "Chart: When to Sell" on p. 2

The bottom line is that in a Journal of Portfolio Management study of fund managers employing consistent sell rules during the bear market of 4/00 - 12/02, portfolio managers using various sell strategies performed as follows:
-make a judgement call when the company's health is deteriorating (45.9% of all portfolio managers used this strategy; they outperformed benchmark by 1.0%)
-sell when the stock hits a certain valuation level (36.8% of all portfolio managers used this strategy; they outperformed benchmark by 5.5%)
-sell when the stock hits a target price (13.9% of all portfolio managers used this strategy; they outperformed benchmark by 3.6%)
-sell because of a better opportunity (2.3% of all portfolio managers used this strategy; they outperformed benchmark by 1.7%)
-sell when the stock was down X% from purchase price (1.2% of all portfolio managers used this strategy; they outperformed benchmark by 2.1%)
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