11-07-2013, 03:11 PM
(This post was last modified: 11-07-2013, 03:12 PM by Dan Mac @DGSInvesting.)
I agree Cannew, those would be the reasons I would consider selling as well.
I would also consider selling if valuations reached exceedingly ridiculous levels (see 1999 to 2001 just before the dot com crash). I think if my Coke stock (or any of the types of companies I typically buy) began trading at P/E's above 40, I would have to think hard about locking in gains knowing that we would be just a year or so out from a big market correction where I could then buy back into my positions at more reasonable prices.
I would also consider selling if valuations reached exceedingly ridiculous levels (see 1999 to 2001 just before the dot com crash). I think if my Coke stock (or any of the types of companies I typically buy) began trading at P/E's above 40, I would have to think hard about locking in gains knowing that we would be just a year or so out from a big market correction where I could then buy back into my positions at more reasonable prices.