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An argument for selling



>From the Motley Fool

http://www.fool.com/dripport/2000/dripport000225.htm
 

I think if we sell our low (and not going to) perform stocks.  We will
quickly find a place to invest the funds.  After all, we've made quite a few
purchases of late.

JP.
 

"...In the high $30s, a large discussion took place on the Drip board and many
  Fools said, "You guys should buy the stock now, it's down." At that point, I
  didn't want to buy Campbell because the business had no earnings visibility, not
  having met initial expectations, and, still, because of the fees. Some argued
  that because we were not likely to buy the stock anymore, we should sell it.
  Others argued that we should stay "long term" on it regardless. The correct
  answer now, in my opinion, would have been to sell it, and I didn't, and I take
  full responsibility for that. Yes, we're long-term investors. Yes, we had just
  began to buy Campbell Soup in 1998. But no, we're not blind investors. We don't
  like to hold something that isn't positioned to perform as we hoped.

  Not only were the fees in the plan bad, but the business wasn't improving as
  hoped, which meant that the stock's valuation was still especially high, and now
  we've seen just how high. The stock has lost about 50%. Before the "Big Fall,"
  we were saying for many months that we'll likely sell Campbell when we find
  something new to buy with the money. We haven't yet. No, you shouldn't rush
  a new investment, so sometimes -- in the meantime -- money is better on the
  sidelines than in a falling stock.

  All in all, I should have been more decisive on Campbell Soup when the plan fees
  were instituted, and Drip Port should have gotten out of what immediately
  became an unattractive situation for us due to the fees. Even later, there were
  chances to sell at much higher prices in the $40s, even when we knew that the
  business wasn't growing like we'd hoped. But even then the issue of being
  long-term investors was still tugging at us -- "Are you long-termers or not, huh?
  How can you sell so soon after buying?" Well, if you think that you've made a
  bad buy decision, being long-term won't save you, so you should sell. Only sell
  when you're as certain as possible, however, that you won't regret it later. (So
  many wishy-washy, knee-jerk, unconfident investors have a hellish existence,
  I'm sure. We're not that way, thankfully, by any means, and hope you're not
  either.)..."