Still Holding? The 3 Questions Professionals Ask Before They Sell

Read the written version

When to Sell a Stock: The Four Rules Institutions Use

Buy and hold forever works for a broad index, because an index quietly sells its own losers for you. It does not work for a single stock, because nothing sells it for you — you have to. Warren Buffett, the global symbol of holding forever, sold $143.4bn of equities in 2024 alone against $9.2bn bought. He has exit rules. Most retail investors have hope — and the research shows they sell winners 1.5 to 2 times more readily than losers, which is exactly backwards. The four institutional triggers are: thesis breach, valuation extreme, fundamental deterioration, and opportunity cost. 'It will come back' is on none of them.

Full article, with the sources and the numbers →