EKS. Selling. As they say, there's more art to it than in the buying decision.
Here are some stocks I sold this year, and the reasons I sold. Not saying in looking back now that the reasons were really the reasons -- possibly with me, emotional selling at the time was a significant factor.
Gave up waiting: WNMLA, ROYL, RHJIF, NUHC, GNRG, DK, AMGN
Gave up -- unexpected corporate situation change: TTO, RIG, FUQI
Gave up -- lost confidence, told myself I saw better opp elsewhere in sector: TPC, JNJ, COP, BK.
Turned into being a trading/gambling stock for me: XOM, TNP, AMR, VZ, VMI. (Achh. Maybe I believed it was an investment when I made my first buys...somehow that changed though.)
Stock drops. Forgot why I would own it: BR, SPAR, MON
Met my original valuation criteria reasons for buying, and I saw no compelling reason to sell or buy at the price after that: BEN, HNZ, FTE, PNY. (Made partial sales.)
Some preferred issues: yields okay, but limited price appreciation after approaching call price. Sold positions.
LTC, AZN: (Out. Held through rise. Decided I don't know what I own at the price. Sold.)
SKX: (Sold most. A net-net I kept after it hit price target. After becoming 6-7 bagger though, impatience/nerves set in.)
Fear of giving up gains(ABT, CONN) Fear of continued losses (either mine or the company's): (BAX, MON). Fear of situation change (e.g. oil prices): APC, COSWF,JBX
Received buyout offers: HDNG, HBRF, CDSCY, ACL etc.
LSBRX: My outsize bond portfolio position. Trimmed.
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I don't care about being stuck in an out-of-favor sector. For me, my situation, I don't need to have every dollar in max alignment to make max gains. Rather, I'm okay with having some money in a sector that goes nowhere. Which I view as a big positive for me just if the stocks I have there don't lose money. Plus, I figure sectors rotate, and out-of-favor can become more favorable.
I know going into net-nets I have to consider I might have to hold the stock 2-5 years. I tell myself I'm okay with 3 years. Five years...likely not. For typical value plays, reversion-to-mean, etc. maybe 1.5 to 3 years is what I guess I might have allow for holding. For investing in large-scale corporate cultural change, my experience is it can take 8 years to complete, but I would like to see positive stock results within about 3 years. For growth stocks (e.g. Nestle, I guess), as I allude, the inheritors of my estate will perhaps make the sell decision.
OTOH, I respond to the emotional aspects of being in the market, and if I succumb, I can, will, and do sell. |
