10-23-2016, 07:15 AM
(This post was last modified: 10-23-2016, 07:15 AM by DividendDragon.)
The approach I take it to sell a % based on how overvalued I feel the company is and its future prospects.
This has worked out well in some cases and poorly in others.
Selling a 33% stake in MSFT at $57 turned out to be a poor decision.
Selling a 50% stake in MCD at $128 turned out to be a pretty good decision.
What is also worth considering is other potential purchases in the market. In both cases I was eyeing other purchases and was keen to re-balance. (Wasn't comfortable holding 15% of my portfolio in MSFT and AAPL).
Overall, in future I think I'd be more inclined to simply hold positions in 'overvalued' companies.
Hope this helps.
Lewys
This has worked out well in some cases and poorly in others.
Selling a 33% stake in MSFT at $57 turned out to be a poor decision.
Selling a 50% stake in MCD at $128 turned out to be a pretty good decision.
What is also worth considering is other potential purchases in the market. In both cases I was eyeing other purchases and was keen to re-balance. (Wasn't comfortable holding 15% of my portfolio in MSFT and AAPL).
Overall, in future I think I'd be more inclined to simply hold positions in 'overvalued' companies.
Hope this helps.
Lewys