There are two major reasons to exit a position

Kimball Brooker of First Eagle Investment Management in New York says “There are two main reasons to sell. First, if your investment thesis is inaccurate or you own something that wasn't what you thought it was. Second, the sell decision can be linked to intrinsic value. Once a stock price converges with what we believe to be the value of the business, we'll discuss it in the context of trimming. In many cases, intrinsic value is not a static number. It can grow. When we feel a stock is at or above intrinsic value, we’ll trim the position. If the stock price rises far north of intrinsic value, we may have to exit the entire position.” (Source: Graham and Doddsville Newsletter 2015). Read the whole Graham and Doddesville report here: (VIEW LINK)

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.