Tuesday, March 30, 2021

Take profit on stocks that appreciated in value

 Someone suggested that I should take profit on the stocks that have appreciated in value. If I keep fully invested, I will be exposed to a market crash that will take away all of the profit and result in a loss.


I give my reply as follows.

4 comments:

  1. If the price of the share is lower than the fundamental value, that tells you that the share

    is cheap and you should make money buying it. In the long run, share prices have to reflect

    the fundamental profits of companies. At the extreme, even if a good-value share stays under

    valued forever, you should still make money holding it and pocketing the dividends.

    Sensible investors.

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  2. We see no reason to doubt that smarter people tend to do better at investing in the long run?

    ReplyDelete
  3. It has been noted that employees have a tendency to invest in company stocks, that is stock issued by the firm that employs them?

    ReplyDelete
  4. Warren Buffet........

    ReplyDelete