From "Warren Buffett and the Interpretation of Financial Statements" by Mary Buffett & David Clark, It says that you would never sell a company with a tremendous durable advantage in the market with integrity management. Holding a good company in your portfolio will make you wealthy and wealthier over time. And you are also inviting a taxman when you sell your shares.
Sometimes, some occasions occur, and maybe that's the time you can think about selling your shares. Here are three-point that Warren shares in this book :
When you need money to make an investment in an even better company at a better price, which occasionally happens.
When the company looks like it's going to lose its durable competitive advantage. Like newspaper companies, now it's more vulnerable with internet appearance.
When the bull market is in an insane buying frenzy, it sends the prices on these fantastic businesses through the ceiling. For example, the PE ratio is around 40 times.
That's the information I can share with you guys. Hope it's helping you and inspire you. If you find this blog helps, mind sharing it with your friends? Maybe they need it. Do care for each other.
Comments