“The basic rules of building wealth by investing in stocks will hold true in this century or the next; it’s still ‘Buy low, sell high.’ ”
Sir John Templeton
The vast majority of what is written about stocks focuses on what to buy; what stocks are hot right now or what sectors and countries are going to be the next big thing. In many respects that’s understandable as making a new investment can be exciting in a similar way to placing a bet at the roulette table (at least for some people).
However, despite this popular focus on buying, what you sell and when you sell is every bit as important as what you buy and when you buy. Most investors I speak to simply have no pre-defined selling strategy at all, or they follow ...