28. When to sell stock like Warren Buffett
Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:
In this lesson, we learned the importance of always understanding the consequences of our actions. Buying and selling stock can have an enormous impact on our success as an investor. The most important thing to learn from this lesson is the emotional decisions when selling stock can often lead to very poor results.
We learned that there are two major rules for knowing when to sell stock:
1. We sell stock when we can trade the capital into an investment that will produce a larger return after accounting for the capital gains tax paid (state and federal). In addition, you’ll want to ensure the risk assumed is comparable for the return received.
2. We sell stock when the business changes its fundamentals. This could mean the way they manage debt. The future outlook for earnings is decreasing…etc
Although the process of accounting for a change in assets is laborious, its purpose often results in enormous financial decisions. Mastering the techniques taught in this video will undoubtedly lead to your success as an intelligent investor.