Quote for the Week
There certainly are good reasons for selling, but they have nothing to do with the fear of making mistakes, experiencing regret and looking bad. Rather, opportunities for intelligent selling should be based on the outlook for the investment and they have to be identified through hardheaded financial analysis, rigour and discipline.
Most economies, companies and markets benefit from positive underlying trends. If investors use poor judgment and reduce market exposure through ill-conceived selling, they will fail to participate fully in those trends. That’s a cardinal sin in investing. It’s even more true of selling things in desperation after their prices have fallen, turning negative fluctuations into permanent losses and dismounting from the miracle of the long-term compounding of returns. What’s clear to me is that as opposed to selling for reasons of psyche, simply being invested is by far “the most important thing.” — Howard Marks (source)