June 25, 2012

The Little Book That Builds Wealth - Chapter14

This is the final chapter. This talks about when to sell a stock.  Some reasons could be when you made some mistake in your original analysis and your assumptions were wrong and no longer valid.  One should sell if the fundamental of the company changes to worse permanently.  If the market value is way beyond the fair valuation, it makes sense to sell and be on cash.  Some could sell, if the individual stock becomes huge part of the portfolio and it needs to be trimmed down.

In conclusion, this is a very good book and worth the money and time spent.  Do read when you get chance and let me know your thoughts.

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