Investment Growth Stocks – When Should You Sell Stocks?
Growth stocks may mean different things to different people, but I personally define growth stocks as company stocks and continue to increase their earnings and dividends each year (and have such a long history). So with that in mind, I'd like to talk about what you should sell these stocks, as this is very important.
If you are fortunate enough to find some quality growth stocks and have some handsome profits, it can induce your profits to invest and reinvest elsewhere. However, as Buffett will tell you, this is not necessarily the best strategy.
The best strategy as long as you are ready to hold your stock for a long time is to resist the temptation to sell and hold further gains. Yes, there may be short-term fluctuations in the process, but if the company continues to increase its income and dividends each year, there is no need to sell because the share price will eventually rise to reflect this sustained growth.
If you hold stock, as long as the company continues to grow and reinvest dividends received each year, then you can be sure When you finally decide to sell, you will get some real income. This is Warren Buffett's devastating impact. He is simply looking for an outstanding market leader and continues to grow profits each year, and holds these shares for years and years benefiting from capital growth and dividends.
It takes a lot of patience because in the short term stock prices can fall to the same level as the overall market, but in the long run, it rewards you for some fantastic profits. The difficulty is finding the right company to invest in, but there are some obvious candidates in some big-cap stocks. In the UK, for example, Tesco is a great company because it has a long history of revenue and dividend growth. In fact, I believe that in writing, Buffett himself owned shares in Tesco.
So to answer the original question when you should sell your stock, you should hold for as long as possible Have your stocks benefit from capital growth and dividend reinvestment. The only time you should consider selling is when there is a danger that the company may stop increasing the annual bottom line, perhaps because another major competitor gains market share, for example, because that obviously means that stock prices are unlikely to be in the next few years Continue to rise.