Time to Sell? One of the most difficult decisions in investing is knowing when to sell. Most investors spend much more time and energy on what to buy and when to buy it. But selling matters just as much.

Many investors hesitate to sell a stock that has declined because they don’t want to ‘lock in’ a loss. Others sell too quickly when they have a gain, fearing they’ll lose it. Both approaches can hurt long-term performance.

We believe in having a disciplined approach to selling — based on valuation, quality, and opportunity cost. If a better investment opportunity exists, or if the fundamentals no longer support the original thesis, we sell.

Selling decisions are best made with logic, not emotion. That’s why we document our original investment reasons and track our thesis over time. When that thesis breaks down, it’s time to move on.

Sincerely,

Katz Family Financial