Join our community of smart investors

When to sell a holding

Selling a holding at the right moment can have a big impact on your overall return
When to sell a holding
  • A look at when and why to sell a holding
  • What to monitor beyond performance figures

From lockdown winners to contrarian fund picks, investment discussions often focus on what and when you should buy. But selling a holding at the right moment can be equally important to your ultimate returns, whether it involves taking profits on something that looks overpriced or getting out before an investment's price starts falling. There are numerous examples of how stubbornly holding on to a compromised investment can have dire results including the recent Wirecard scandal and demise of LF Woodford Equity Income fund.

A focus on buying means that investors trying to identify sell signs tend to find scarce guidance on the subject. But the following general principles could help you to decide when to call it quits.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in