Have you ever sold a stock at the right moment? Share your story below! To help you navigate the stock market and maximize your wealth, I'm sharing the 3 greatest stock market myths ever told. Get the free PDF: bit.ly/2J4x0E3
I started in Robinhood for investing March 30th and since then have had a 35% increase, most thanks to Beyond Meat. Its fallen greatly at the perfect time when I pulled out. I walked away with $1,200 and now choosing to stop investing until I master your value calculations. Everything I learned thus far has been luck and minimum research about investing. Your material has been greatly helpful in getting me started. I look forward to finishing all three of your books and Graham's book hopefully before school starts back up in the Fall. Maybe a new video on how to do a calculation? I know it's on the website, but it seems tricky to find and input the numbers. Thanks so much for your help! Much love from San Diego!
Yes I have sold stock at what I would say at the right time as it was dropping. I cut my losses. I've also sold some for great gains before they dropped.
I'm starting to believe whoever seeks finds. This is definitely one of the most valuable videos on TH-cam teaching this subject. It really made no sense to me when he said ''It doesn't matter whether I'm right or wrong, whether the market goes up and down. I'm good regardless''. People are really losing a sh*t ton of money out here. I personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Sometimes, the strategies to stay on constant green in a downturn markets are quite rigorous for the regular-Joe. Matter of fact, they are most successfully carried out by experts who have had a great deal of skillset/knowledge of the market. Maybe you should hire one.
@@2024Red-j5t Agreed! I first contacted a Financial Analyst because these days, it's easy to buy into trending stocks, but the task is knowing when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. I’m currently 60% up in profits just in 5months with my initial capital of $160k
@@2024Red-j5t She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
You sell it when the discounted future cash flows are less than the current price. But really you sell whenever you have found an investment that has a better future outlook and sometimes that’s selling to hold cash.
Each day I believe more and more in buying an Index Fund and keeping it ... forever. Almost nobody can time the market, the chances of beating the "buy and hold" not only are lower but we also pay much much more in fees when buy and selling. Also, all the time needed to follow the stocks that we have, etc, etc. An Index fund makes the things Incredibly easy and simple, we just buy and that's it. We forget about wall street is saying, brokers, etc... I would say: ETF is THE way to go :)
Understanding the companies you purchase is time comsuming, but a smart investor will take the time to know where their pot of gold is going to. You are the first person to give real advice, everyone else always say nothing and want the viewer to buy their book or videos.
Hey Tú Phạm! The 'Value', by the way, is the amount of money this business will sell for if someone decides to buy all of it in a good stock market. Click here to learn the Rule #1 way to value a business: bit.ly/2Jc995o
I'm from the Philippines... during the 2007 financial crisis, I bought a stock @ 30. after two years it hit 70. I sold and happy with profits. feeling like a great investor. that was 12 years ago. the price now is 230.
I remember purchasing this company stock MCX (in India), close to the book value, the parent company of this firm was going through some serious problem at the time and MCX was beaten down severely although this company had a strong balance sheet (almost debt free). One year down the line MCX trebled in price and me selling out, only to watch go up by 10x (from my buy price).
Not really what I was looking for. Supposedly I did all the correct fundamental analysis. Build up a portfolio of let’s say about 20 stocks. What should I do when a stock reaches 20%, should I buy more ? Or book profits? Or systematically sell ? Conversely, what should I do when a stock declines 20%, should I hold onto it unless it gets back up? Or should I systematically try to sell out all my stocks? I know if I believe in a stock, I should hold onto it forever but then what’s the use of having all the wealth when you are 62 or something? When are you gonna live ? Most of us will dead by heart attacks and strokes by then
Great video once again. Selling is as important as when you buy. Setting up targets for yourself takes out emotion, which is a very important catalyst.
Rule One investors try to be intensely rational. We try to get emotion out of it. We love it when someone on this site blows up our thesis because that person just saved us from losing our butts because of something we didn't see. bit.ly/2XyUtX0
Is it a different scenario if you sell during a price drop because there are signals indicating the big guys are moving out of the market? Even if the stock price still hasn't reached its intrinsic value?
Question about the intrinsic value point. Why not wait out to see where the company heads if it continues growing so you dont miss out on chipotle like gains? The intrinsic value doesn’t change anyway so even if it does go below its I.V we should be confident enough to know it will eventually go back up? Would love to hear an answer on this.
Enphase Energy. I made the mistake to sell when the stock was going down around the beggining of the pandemic. I originally purchased it when it was hovering around 5 dollars, and sold just under $60 (although my Roth is still invested in it : ) All things considered, I made out pretty good, however now look at it today just about a year after I sold it, its hovering around 190-200. This was a company that I highley beleive in and still do (Insert the Buffett affect here), and even though the stock went even lower than my sell price, I bought other stocks with some of those proceeds a couple of months later. Overall, 3 of them now are performing very well, even better in some cases, so now I'm back at that question again. Do I sell or hodl : ) since 2 have skyrocketed in short term, I think I should shave off some profits since 2 are overvalued. But then there's Tesla.........
Hi Phil, are there any videos on your channel where you walk us through reading the Three Tools? I have read Rule 1 twice, have invested a little money but I don't feel super confident (yet) in my ability to work with the tools. I used the search feature on the channel and came up with useful videos....but none that have been exactly what I need. Thanks!
Hello mr Phil. I am a 15 year old from Morocco. I have recently acquired a stock for 40% less than its true value so to speak. But due to the market recession that is currently happening it has been going down. Should I sell in the hope of buying it cheaper , or should I be satisfied with the 80% profit that I would earn if it were to return to its original value ? Thanks a lot , I'm a big fan of yours
Hi Phil. I follow the Rule #1 investing philosophy. Selling is one of the most difficult tasks for me as a high earner (marginal tax rate 37%) and during periods of extreme volatility. Post COVID for example, a couple of the businesses I own (purchased at a discount with a 50% MOS, no changes in fundamentals) have reached or passed their sticker price. Technical analysis does not signal a sell. I have conflicting feelings on selling since I would incur in short-term capital gains tax (wiping out 37% of my earnings). How do you handle this?? Thanks! Hope you read this.
If you use a correct "qualified intermediary" to facilitate it, I believe you can do a 1031 exchange for ANY investment. I have known people that exchanged different types of investments. For example, someone did a 1031 exchange from an airplane into a share of natural gas pipeline. Since they were both "investments" and used the correct IRS process, there were no taxes payable. This is a true story.
I would just offer two cents in two words. Stop Loss. I'm not talking about a stock dropping 5% just after you bought it but if your stock is already up 40-50% then set a stop loss to still keep half of that in case the stock tanks for any reason. There is an old axiom on Wall Street, Sometimes the bulls win, sometimes the bears win, but the hogs always get slaughtered.
Thanks so much this is the kind if video I needed. I'm in the same dilemma now I bought a stock that hasn't reached its intrinsic value by 10 more dollars in price, and man I'm feeling tempted to cut my losses however I'm gonna hold on and wait till it goes above it's real value. This video calm me down.
In this podcast episode we continue our talk about when to sell stocks and when to get out of the market. You’ll learn how to ensure that when the stock market corrects, you have enough value to be able to invest and capitalize on the situation: bit.ly/2Lgoy75
I don’t agree with selling off when the intrinsic value is off. There are numerous big companies that well surpass that price but yet their price still climbing. But I agree in some aspect that he is right.
How do we know when our stocks have gone too far and it’s time to sell it? We end at the beginning. (Isn’t that some kind of clever Zen thing?) Read more here: bit.ly/2xfQLD5
Hi Phil, For tax benefit, would u recommend holding stock for 1 year, if the value of stock have reach to its intrinsic value before 1 year. Thank you Sagar
Hi Phil, you mentioned to not sell a stock when the price starts to drop. What about using technical indicators such as MACD and stochastic to aid in jumping in and out of the stock as it climbs back to its intrinsic value? Rarely will the stock price just continue to rise with no dip. What are your thoughts on this and can you share some insights on how to properly use technical indicators from your experience?
Just hold your nose and endure the pain that’s what he is saying. I think your style is more like for swing trading while he is forever HODLtil he leaves this planet well almost
@@marcduchamp5512 I read his book Rule #1 investing and in it, he talked about using technical indicators. I was just wondering if his view on using these tools has changed since he wrote the book. I don't see him talking a lot about technical indicators in his youtube videos.
@@PatricHua I'm wondering the same thing. I'm confused about whether to use technical indictors now. His latest book Invested never mentions them. I've emailed his company - hopefully they'll give me an answer.
Tesla back when it was around 55$. I was in my investment beginnings. Didn’t do my homework and placed a selling order right before it soared the next day from fiscal quarter report.
Phil Where can I find the formula for the excel sheet to work out the intrinsic value of the company? Also is there a scanner or a newsletter service that we can use that can scan NYSE? Thanks
Hey Suresh! One of the most difficult aspects of investing is knowing exactly how to value a business and figuring out if a stock is at a good price to buy. These calculators take the guesswork out of investing on your own: bit.ly/RuleOneCalculators
I'll share my list of stocks that I sold when I should not have to (2020 was my first year investing) Disney Paypal Moderna Pinterest I missed opportunities to gain even 50% well lesson learned, right now my mission is that my analysis take me to pick stocks at a good moment and not to sell them until I find one of the reasons Phil told us or if they give me at least 10% of investment return
I bought Canopy Growth Corp (WEED) in Dec 2017 at about CAD$19.50, then i sold it after it boomed then dropped to $24.00. I still made a profit, but the company is now valued at $57.67/share Ouch... still hurts till this date.
Again: It is extremely difficult to time the market, consistently. I mean, we all can be lucky, 1, 2, 3 times... But in the long run, The Market will perform better and (specially) it's incredibly easier! ETF, it's the way to go! :)
Fundamentally it's not a good company so I wouldn't have bought it anyways. You will always miss out on profit opportunities don't worry. It's more important to be consistent
What about selling out of a stock, taking your loss, and then immediately buying back in at that new lower price? I heard that averaging down into a losing position (even if it is a strong stock) can be very risky - particularly when you only have a little bit of money to start with.
I bought izea stock as low as $0.15 !ND as high as $0.49 since 2018. I sell 2 years later, before the pandemic, because it had hit $0.56 and I was worried about losing my money so I sold. I had 2690 shares. Not bad for a 19 y/o I guess. Well today izea is worth over $4 and hit highs as high as $7 only a couple months later. Oh well, I'll get the next one.
One possibility is to sell part of your stock, so that you recuperate your seed money, leaving "house money" as the remainder of the investment, this way you lose nothing. This is easier psychologically. I've hung on to a stock that had been a one bagger at one point only to see it drop so that only 5% of my initial investment remained. The CFO of the company was claiming that the short sellers attacking his stock didn't understand the company's business model. I've updated my checklist to take into account the short selling on a stock I had no way of knowing who was right, but in retrospect, I should have sold half my stake to recuperate my seed money.
another question need your help Mr Town: pretend my intrinsic value is 10$ for ten years, divided by 4 -> my intrinsic value is 2$ in present, multiple 50% -> my price to buy stock 1$. So 2$ is value of company in one year, but if come 2nd year, should my intrinsic value become 2$*(1+k) ? That mean the intrinsic value grow up every year, am I right ?
Your advicing to sell stocks based on internal changes but the very time we realize that fundamentals have changed or price reached intrinsic value may not be the best time to sell because market takes some more time to realize this. why don't we take benefit from this by holding stock little longer. From time the fundamentals have changed we can keep tracking price movement, volumes and delivery trends then we can approximate the peak point and sell then.
usually when investors calculate the intrinsic value of a company they use the discounted cash flow method while book value is the just the total assets of a company minus its total liabilities
How about when there is a "bubble." It's hard to know if Microsoft is valued well or if Tesla is valued well. Any tips for July 2020? I think you should more theatrically ask for "likes"! Your videos are so good. I notice that I tend to press the like button if something surrounding the suggestion is quirky or creative or funny. Just my suggestion to you. Thank you for all of your information.
Hi Phil, first let me apologize because English is not my first language. I have the following experience, I’m a beginner investor. Several months ago I have 5 Tesla stocks For around $290.00, and for bad timing I sold them because I became a little scare of losing money. Around February 2020 Tesla stocks jump to almost $1,000 a share. I became so angry with myself because even with the market crash for the coronavirus the stocks are doing ok and if I keep them I’m still making money from them. So let’s suppose that I have kept them, a good strategy would be to selling the stocks when they reach almost $1,000 make a profit and buy them again at a lower price for half the price? Hope you answers me Phil, thanks.
Thanks Phil for the video. I've been following you for more than a year now. I also read your first 2 books and then started doing research to find a good buy. I'm based in Sydney, thus doing my research in Australia. After doing my homework and research I found a company that had a brilliant 10-year growth (and numbers) and it was on sale. After I got in around May last year, it went up by 10%, then nose-dived from $4.40 to $1.50. Then I realised (based on the company announcement) that they have issues with debt repayments. Interestingly, when I bought it, there was 0 dept and because they got rid of the subsidiary company, they are responsible to pay its debt. Now the price is 35 cents and in the verge of getting bankrupt or taking private (offer is yet to be announced, if any). The reason I'm telling this story is that It is really hard to understand and rely on the management. They kept this huge problem from shareholders for more than a year and didn't inform until it was too late. My question here is: should we have a stop loss when we invest as a Rule 1 investor? In your book, Payback Time, you keep saying that if the story has not changed then buy more even if the price drops more... So, how we make sure that something is not hidden and the communication from the management is decent? Thank you very much in advance.
Never hold a stock like he said, set a stop loss wide enough to protect yourself or trail stops. Things changes either you monitor closely or let the stop loss do the job. If the profit is on the table and you don’t take it the house will clear it for you. I don’t believe it holding anything long term unless it is the index fund or ETFs that track the major indexes and pay dividends
How do you find out if a manager is doing a good job or not? Google them and find them on Wikipedia. Get an idea of businesses that the CEO has run in the past and if they have been successful or not. Listen to my podcast for more on this subject: bit.ly/31QjEDM
I like most of what Phil says, but I think we have different investing styles. I'm holding Roku, and I think that one's just a little bit above intrinsic value lol
I had a water ETF for a while. It went up about 30% and then kinda just sat there for a couple of quarters. Then the legal marijuana space opened up. So I sold the water ETF (all of it) and bought some shares of a Canadian cannabis company that I liked (which I eventually sold after it gained 50%). So now I can say I sold all my water and bought weed.
I have a stock that is just over 15x's my buy in. It sparked very quickly, but it seems like it only just began to grow. I feel like it's going to be greatly needed in the future, so I'm only going to look for more buy in opportunities.
My aim is to never sell, however at the point it’s met or becomes overvalued is my triggers. Rather sell too soon than too late also! Great vid as always!
How would never selling a stock make you money? Unless it pays good dividends. That's the one thing I never understood from this concept of not wanting to sell a stock ever. Would really appreciate if you could clarify this.
Marius Cristian Ciubotariu tbh I didn’t mean it literally, more hold with a long term horizon in mind and sell when the business outlook changes negatively. Some things like an ETF index tracker (I.e S&P 500) there’s no point in selling until retirement or for the distant future as it will tend to always rise in the long term
Infant Investors Just make sure when you distribute your asset it has not dropped in half due to periodic crashes there’s always the risk for the folks to trusting the market too much
I sold a stock to soon. The company was in a huge struggle but it had a history of being great and I liked the CEO. I bought 1500 shares at $6.23. I felt it was worth at least $10 per share. Well in a matter of weeks in ran to $7.23 per share. I thought it ran to far to fast so I sold and made $1500. Months later it went to $13 per share. So had I held I would have made about $10000 instead of $1500. Can anybody guess the stock?
It’s close to the answer I was looking for but not exactly. My question is how I can buy a Ferrari if I never sell a stock? I’m ready to hold my stocks for long and also forever but how can I encash it for a better living standard? Not everybody is like Warren Buffett to stay in the same house for 50 years or eat the same breakfast. I’m failing to understand how to get some hard cash in hand to spend if no stocks are sold. I just don’t want to die handing over all my money to charity, Even Warren says not to compromise with the living standard or requirement and to do donate when surplus amount of money is left in the hand. But how how how? Can anybody answer?
Made the same move on cmg. One of my biggest mistakes was to sell pcg after a doublebager, when they filed chapter 11. I should have listened to Peter Lynchs advice about utilities in „beating the street“.
Honestly i went a different route. I know myself i don't have the patience to do homework on one stock. I invested 80% in the Total Stock Market Index. That way i get Large,Mid,and small caps. Then i put 20% in the International Market. I took a more passive approach. My investing strategy is similar to the late great Jack Bogle. Using his words why look for a needle in a haystack when you can just buy the haystack. GLTA
It's just because the higher the risk, the higher the reward. If you want to make a very good return on your investment in 10 years not 40, investing in a few good companies using Warren Buffet's strategy is the way to go. Warren recommends buying the S&P 500 if you can't be bothered to learn how to invest.
@@Rugbystu14 Do you know who Jack Bogle is. Why do you think they call it the Total Stock Market Index. Every stock you own i own my friend.There is more rewards in single stocks. But with my way when you make money i make money. When you lose money i still make money.
Sometimes (especially when you're new at investing) you just make mistakes, and it's just best to strap on a parachute and bail out. That's not being emotional. That's being realistic. Learn from your mistake, take your lumps, and move on.
Have you ever sold a stock at the right moment? Share your story below! To help you navigate the stock market and maximize your wealth, I'm sharing the 3 greatest stock market myths ever told. Get the free PDF: bit.ly/2J4x0E3
I am selling shop now. We will see if it's a good sell.
I started in Robinhood for investing March 30th and since then have had a 35% increase, most thanks to Beyond Meat. Its fallen greatly at the perfect time when I pulled out. I walked away with $1,200 and now choosing to stop investing until I master your value calculations. Everything I learned thus far has been luck and minimum research about investing. Your material has been greatly helpful in getting me started. I look forward to finishing all three of your books and Graham's book hopefully before school starts back up in the Fall. Maybe a new video on how to do a calculation? I know it's on the website, but it seems tricky to find and input the numbers. Thanks so much for your help! Much love from San Diego!
Thanks sir..
Yes I have sold stock at what I would say at the right time as it was dropping. I cut my losses. I've also sold some for great gains before they dropped.
@@wangfred What did you get in at?
I'm starting to believe whoever seeks finds. This is definitely one of the most valuable videos on TH-cam teaching this subject. It really made no sense to me when he said ''It doesn't matter whether I'm right or wrong, whether the market goes up and down. I'm good regardless''. People are really losing a sh*t ton of money out here. I personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Sometimes, the strategies to stay on constant green in a downturn markets are quite rigorous for the regular-Joe. Matter of fact, they are most successfully carried out by experts who have had a great deal of skillset/knowledge of the market. Maybe you should hire one.
@@2024Red-j5t Agreed! I first contacted a Financial Analyst because these days, it's easy to buy into trending stocks, but the task is knowing when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. I’m currently 60% up in profits just in 5months with my initial capital of $160k
@@devereauxjnr Please can you leave the info on how to reach your investment advisor here? I’m in dire need for one.
@@Countstep0099 credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up
@@2024Red-j5t She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
Coming back to this video now that the market has rocketed off of the pandemic lows! Tough decisions to make!
One of the best mentor in TH-cam for investing for all levels. Love this guy and I love what money can do for me !!!
Just finished your book and I highly recommend it! Looking forward to implementing the strategies 👍
Read the books he recommends too I am reading investment checklist and it’s amazing
It's worth the price? I'm considering it for practical knowledge!
You sell it when the discounted future cash flows are less than the current price. But really you sell whenever you have found an investment that has a better future outlook and sometimes that’s selling to hold cash.
I sell when i need to buy a house/car, like a real person lol
I really laughed out loud when you started about Chipotle!
And thanks for the wonderful tips Phil!
Especially at over 1000 now
He seems humbled by it and thats important to portray if you want to be able to give some basic advice and have people trust you to a certain degree.
Each day I believe more and more in buying an Index Fund and keeping it ... forever.
Almost nobody can time the market, the chances of beating the "buy and hold" not only are lower but we also pay much much more in fees when buy and selling. Also, all the time needed to follow the stocks that we have, etc, etc. An Index fund makes the things Incredibly easy and simple, we just buy and that's it. We forget about wall street is saying, brokers, etc...
I would say: ETF is THE way to go :)
Understanding the companies you purchase is time comsuming, but a smart investor will take the time to know where their pot of gold is going to.
You are the first person to give real advice, everyone else always say nothing and want the viewer to buy their book or videos.
We all know Phil made BANK with chipotle.
Meanwhile, the rest of us go broke from eating so much of it.
Lol Chipotle is at 1350$
@@stanmarge6326 1944$😂
Hey Phil! You mentioned about the real value of a company. Can you make a video to explain deeper about how to calculate it? Thanks
Hey Tu - If you read his book Rule #1, he goes into specific detail on how to calculate intrinsic value.
Tú Phạm Xuân Tu: ETF, it's the way to go :)
Hey Tú Phạm! The 'Value', by the way, is the amount of money this business will sell for if someone decides to buy all of it in a good stock market. Click here to learn the Rule #1 way to value a business: bit.ly/2Jc995o
I'm from the Philippines...
during the 2007 financial crisis, I bought a stock @ 30. after two years it hit 70. I sold
and happy with profits.
feeling like a great investor.
that was 12 years ago.
the price now is 230.
Can we hold our stocks for a long time? Beginner here
@@nikeshaii yes, it's yours
Did you try recalculating the intrinsic value before you sold? Maybe it was higher than 70.
@@ImChickenLittle I have a question.. if stocks go low can you just hold on or you can’t?
@@Me.Cruz123 you can hold on forever if you wanto
Yup i did , when i first started trading. Good thing i didnt sell at the dip in December and started investing in great companies. Now im up 12.7 %
Is it ok to sale some of a stock to get some of the profits off it?
I remember purchasing this company stock MCX (in India), close to the book value, the parent company of this firm was going through some serious problem at the time and MCX was beaten down severely although this company had a strong balance sheet (almost debt free). One year down the line MCX trebled in price and me selling out, only to watch go up by 10x (from my buy price).
I got COKE at@ $130 and sold at $185 when it started going down but as soon and I sold it, it shot up to $400. Thanks Phil learning alot keep it up
Hi,
I am glad I watched this video.
I had a doubt about selling, from the book I had understood that we sell when the three indicators say to do it.
Not really what I was looking for. Supposedly I did all the correct fundamental analysis. Build up a portfolio of let’s say about 20 stocks.
What should I do when a stock reaches 20%, should I buy more ? Or book profits? Or systematically sell ?
Conversely, what should I do when a stock declines 20%, should I hold onto it unless it gets back up? Or should I systematically try to sell out all my stocks?
I know if I believe in a stock, I should hold onto it forever but then what’s the use of having all the wealth when you are 62 or something? When are you gonna live ? Most of us will dead by heart attacks and strokes by then
Great video once again. Selling is as important as when you buy. Setting up targets for yourself takes out emotion, which is a very important catalyst.
Rule One investors try to be intensely rational. We try to get emotion out of it. We love it when someone on this site blows up our thesis because that person just saved us from losing our butts because of something we didn't see. bit.ly/2XyUtX0
Hello. What to do if I believe in the future of company but the stock is overvalued? Like Tesla. What do you recommend?
Is it a different scenario if you sell during a price drop because there are signals indicating the big guys are moving out of the market? Even if the stock price still hasn't reached its intrinsic value?
Goood question.. Phil!?
Guys what do you think about NKLA? I am 37% down but I think there is a great potential on it. Would you buy more now that it's down 37%? Ta.
Question about the intrinsic value point. Why not wait out to see where the company heads if it continues growing so you dont miss out on chipotle like gains? The intrinsic value doesn’t change anyway so even if it does go below its I.V we should be confident enough to know it will eventually go back up? Would love to hear an answer on this.
Enphase Energy. I made the mistake to sell when the stock was going down around the beggining of the pandemic. I originally purchased it when it was hovering around 5 dollars, and sold just under $60 (although my Roth is still invested in it : ) All things considered, I made out pretty good, however now look at it today just about a year after I sold it, its hovering around 190-200. This was a company that I highley beleive in and still do (Insert the Buffett affect here), and even though the stock went even lower than my sell price, I bought other stocks with some of those proceeds a couple of months later. Overall, 3 of them now are performing very well, even better in some cases, so now I'm back at that question again. Do I sell or hodl : ) since 2 have skyrocketed in short term, I think I should shave off some profits since 2 are overvalued. But then there's Tesla.........
A bit confused between, 'never lose money' rule vs hold when the price dips. How much of a dip should I tolerate?
do I sell only the profit margin from the principal or the whole thing?
Hi Phil, are there any videos on your channel where you walk us through reading the Three Tools? I have read Rule 1 twice, have invested a little money but I don't feel super confident (yet) in my ability to work with the tools. I used the search feature on the channel and came up with useful videos....but none that have been exactly what I need. Thanks!
Hello mr Phil. I am a 15 year old from Morocco. I have recently acquired a stock for 40% less than its true value so to speak. But due to the market recession that is currently happening it has been going down. Should I sell in the hope of buying it cheaper , or should I be satisfied with the 80% profit that I would earn if it were to return to its original value ? Thanks a lot , I'm a big fan of yours
Hi Phil. I follow the Rule #1 investing philosophy. Selling is one of the most difficult tasks for me as a high earner (marginal tax rate 37%) and during periods of extreme volatility. Post COVID for example, a couple of the businesses I own (purchased at a discount with a 50% MOS, no changes in fundamentals) have reached or passed their sticker price. Technical analysis does not signal a sell. I have conflicting feelings on selling since I would incur in short-term capital gains tax (wiping out 37% of my earnings). How do you handle this?? Thanks! Hope you read this.
If you use a correct "qualified intermediary" to facilitate it, I believe you can do a 1031 exchange for ANY investment. I have known people that exchanged different types of investments. For example, someone did a 1031 exchange from an airplane into a share of natural gas pipeline. Since they were both "investments" and used the correct IRS process, there were no taxes payable. This is a true story.
I would just offer two cents in two words. Stop Loss. I'm not talking about a stock dropping 5% just after you bought it but if your stock is already up 40-50% then set a stop loss to still keep half of that in case the stock tanks for any reason. There is an old axiom on Wall Street, Sometimes the bulls win, sometimes the bears win, but the hogs always get slaughtered.
I really enjoy the way you explain everything. It is so simple and yet so effective
Thanks so much this is the kind if video I needed. I'm in the same dilemma now I bought a stock that hasn't reached its intrinsic value by 10 more dollars in price, and man I'm feeling tempted to cut my losses however I'm gonna hold on and wait till it goes above it's real value. This video calm me down.
Can you do a video about computing the intrinsic value of a stock?
In this podcast episode we continue our talk about when to sell stocks and when to get out of the market. You’ll learn how to ensure that when the stock market corrects, you have enough value to be able to invest and capitalize on the situation: bit.ly/2Lgoy75
If you do not have enough money to invest to buy one whole stock is a good to buy part of that stock like part of a whole share?
I don’t agree with selling off when the intrinsic value is off. There are numerous big companies that well surpass that price but yet their price still climbing. But I agree in some aspect that he is right.
Phil, thanks for another great video. I also listen to your podcast and I chuckle every time you mention Chipotle.
What do you think the better way to selling our stocks? should we scaling out or just sell it at the one price?? Thank you.
How do we know when our stocks have gone too far and it’s time to sell it? We end at the beginning. (Isn’t that some kind of clever Zen thing?) Read more here: bit.ly/2xfQLD5
Hi Phil,
For tax benefit, would u recommend holding stock for 1 year, if the value of stock have reach to its intrinsic value before 1 year.
Thank you
Sagar
Love your books and videos! What do you think of the Morningstar fair values in its premium membership?
Hi Phil, you mentioned to not sell a stock when the price starts to drop. What about using technical indicators such as MACD and stochastic to aid in jumping in and out of the stock as it climbs back to its intrinsic value? Rarely will the stock price just continue to rise with no dip. What are your thoughts on this and can you share some insights on how to properly use technical indicators from your experience?
Just hold your nose and endure the pain that’s what he is saying. I think your style is more like for swing trading while he is forever HODLtil he leaves this planet well almost
@@marcduchamp5512 I read his book Rule #1 investing and in it, he talked about using technical indicators. I was just wondering if his view on using these tools has changed since he wrote the book. I don't see him talking a lot about technical indicators in his youtube videos.
@@PatricHua I'm wondering the same thing. I'm confused about whether to use technical indictors now. His latest book Invested never mentions them. I've emailed his company - hopefully they'll give me an answer.
Tesla back when it was around 55$. I was in my investment beginnings. Didn’t do my homework and placed a selling order right before it soared the next day from fiscal quarter report.
Phil
Where can I find the formula for the excel sheet to work out the intrinsic value of the company?
Also is there a scanner or a newsletter service that we can use that can scan
NYSE?
Thanks
Hey Suresh! One of the most difficult aspects of investing is knowing exactly how to value a business and figuring out if a stock is at a good price to buy. These calculators take the guesswork out of investing on your own: bit.ly/RuleOneCalculators
Perfect timing... exactly what I was mulling over about 1 stock for the past few days. Sell or keep this one? Decision made. Thanks so much Phil.
This was really helpful, professional and sound. Thank you!
I'll share my list of stocks that I sold when I should not have to (2020 was my first year investing)
Disney
Paypal
Moderna
Pinterest
I missed opportunities to gain even 50% well lesson learned, right now my mission is that my analysis take me to pick stocks at a good moment and not to sell them until I find one of the reasons Phil told us or if they give me at least 10% of investment return
If you sell the stock at intrinsic Value and it goes to grow year by year...!
I bought Canopy Growth Corp (WEED) in Dec 2017 at about CAD$19.50, then i sold it after it boomed then dropped to $24.00.
I still made a profit, but the company is now valued at $57.67/share
Ouch... still hurts till this date.
KatEyesQueen don’t stoooop, belieeeeving’ ...
Again:
It is extremely difficult to time the market, consistently. I mean, we all can be lucky, 1, 2, 3 times... But in the long run, The Market will perform better and (specially) it's incredibly easier! ETF, it's the way to go! :)
Fundamentally it's not a good company so I wouldn't have bought it anyways. You will always miss out on profit opportunities don't worry. It's more important to be consistent
It never hurts to take profits!!
@@thepandaahbear9025 what makes it a bad company?
Sir, your advice on mutual funds pls.
i believe index funds are better than mutual funds just because the management fees are lesser
Can these rules apply for trading?
What do you guys think about INTEL? 03 of August 2022 btw
thank for your advice uncle phil
How does intrinsic value get calculated? This video was very general and not for beginning investors.
Yeah, BABA the other day when i made quick buck n got out ..not sure why i got out, just took the $ and ran.
So for example I buy a stock for cheap and made over 100% Return should I sell if I didn't hold it for a year?
What about selling out of a stock, taking your loss, and then immediately buying back in at that new lower price?
I heard that averaging down into a losing position (even if it is a strong stock) can be very risky - particularly when you only have a little bit of money to start with.
thats also speculations, because you dont know what will the market do so you bet that it will go down
How do I find true value?
Sir what to do in current situation of the market market down very fast
I bought izea stock as low as $0.15 !ND as high as $0.49 since 2018. I sell 2 years later, before the pandemic, because it had hit $0.56 and I was worried about losing my money so I sold. I had 2690 shares. Not bad for a 19 y/o I guess. Well today izea is worth over $4 and hit highs as high as $7 only a couple months later. Oh well, I'll get the next one.
One possibility is to sell part of your stock, so that you recuperate your seed money, leaving "house money" as the remainder of the investment, this way you lose nothing. This is easier psychologically.
I've hung on to a stock that had been a one bagger at one point only to see it drop so that only 5% of my initial investment remained. The CFO of the company was claiming that the short sellers attacking his stock didn't understand the company's business model. I've updated my checklist to take into account the short selling on a stock I had no way of knowing who was right, but in retrospect, I should have sold half my stake to recuperate my seed money.
So the maximum of profit from this technique is allways equal 100% ? How can i multiple profit to x3 x4 if the price to buy stock = 50% * stick price
another question need your help Mr Town: pretend my intrinsic value is 10$ for ten years, divided by 4 -> my intrinsic value is 2$ in present, multiple 50% -> my price to buy stock 1$. So 2$ is value of company in one year, but if come 2nd year, should my intrinsic value become 2$*(1+k) ? That mean the intrinsic value grow up every year, am I right ?
Your advicing to sell stocks based on internal changes but the very time we realize that fundamentals have changed or price reached intrinsic value may not be the best time to sell because market takes some more time to realize this. why don't we take benefit from this by holding stock little longer. From time the fundamentals have changed we can keep tracking price movement, volumes and delivery trends then we can approximate the peak point and sell then.
what is the difference between intrinsic value and book value?
usually when investors calculate the intrinsic value of a company they use the discounted cash flow method while book value is the just the total assets of a company minus its total liabilities
How about when there is a "bubble." It's hard to know if Microsoft is valued well or if Tesla is valued well. Any tips for July 2020?
I think you should more theatrically ask for "likes"! Your videos are so good. I notice that I tend to press the like button if something surrounding the suggestion is quirky or creative or funny. Just my suggestion to you. Thank you for all of your information.
I felt you when you laughed about the chipotle, The same happened to me with TSLA:(
Hi Phil, first let me apologize because English is not my first language. I have the following experience, I’m a beginner investor. Several months ago I have 5 Tesla stocks For around $290.00, and for bad timing I sold them because I became a little scare of losing money. Around February 2020 Tesla stocks jump to almost $1,000 a share. I became so angry with myself because even with the market crash for the coronavirus the stocks are doing ok and if I keep them I’m still making money from them. So let’s suppose that I have kept them, a good strategy would be to selling the stocks when they reach almost $1,000 make a profit and buy them again at a lower price for half the price? Hope you answers me Phil, thanks.
Thanks Phil for the video.
I've been following you for more than a year now. I also read your first 2 books and then started doing research to find a good buy. I'm based in Sydney, thus doing my research in Australia. After doing my homework and research I found a company that had a brilliant 10-year growth (and numbers) and it was on sale. After I got in around May last year, it went up by 10%, then nose-dived from $4.40 to $1.50. Then I realised (based on the company announcement) that they have issues with debt repayments. Interestingly, when I bought it, there was 0 dept and because they got rid of the subsidiary company, they are responsible to pay its debt. Now the price is 35 cents and in the verge of getting bankrupt or taking private (offer is yet to be announced, if any). The reason I'm telling this story is that It is really hard to understand and rely on the management. They kept this huge problem from shareholders for more than a year and didn't inform until it was too late.
My question here is: should we have a stop loss when we invest as a Rule 1 investor? In your book, Payback Time, you keep saying that if the story has not changed then buy more even if the price drops more... So, how we make sure that something is not hidden and the communication from the management is decent?
Thank you very much in advance.
Never hold a stock like he said, set a stop loss wide enough to protect yourself or trail stops. Things changes either you monitor closely or let the stop loss do the job. If the profit is on the table and you don’t take it the house will clear it for you. I don’t believe it holding anything long term unless it is the index fund or ETFs that track the major indexes and pay dividends
How do you find out if a manager is doing a good job or not? Google them and find them on Wikipedia. Get an idea of businesses that the CEO has run in the past and if they have been successful or not. Listen to my podcast for more on this subject: bit.ly/31QjEDM
I like most of what Phil says, but I think we have different investing styles. I'm holding Roku, and I think that one's just a little bit above intrinsic value lol
right now there are probably no companies that are worth buying from a Rule One stand point.
I had a water ETF for a while. It went up about 30% and then kinda just sat there for a couple of quarters. Then the legal marijuana space opened up. So I sold the water ETF (all of it) and bought some shares of a Canadian cannabis company that I liked (which I eventually sold after it gained 50%). So now I can say I sold all my water and bought weed.
Hey Phil love your videos and yes I did sell a stock too late GE at 5 I picked the perfect bottom to sell LOL
There is a Spanish version of your books? Great video, and wonderful information, thanks
Thanks for the video, helped me gain the confidence.
How to figure out the "intrinsic value"? Is that the million dollar question for everyone or are there clues?
Yes, I have sold amazon and Brk.a before covid happens and rebuy two months later.
Chipotle at $836 now Phil. lol. Thanks for another great video!
I have a stock that is just over 15x's my buy in. It sparked very quickly, but it seems like it only just began to grow. I feel like it's going to be greatly needed in the future, so I'm only going to look for more buy in opportunities.
as a fairly new investor sold many stocks i shouldn't have due to short term fear. and this past week i'm learning to be paitent with my research.
Great video! I got suckered into selling on price drops.it saved me a couple times, but it just made me lose money most times.
My aim is to never sell, however at the point it’s met or becomes overvalued is my triggers.
Rather sell too soon than too late also!
Great vid as always!
How would never selling a stock make you money? Unless it pays good dividends.
That's the one thing I never understood from this concept of not wanting to sell a stock ever.
Would really appreciate if you could clarify this.
Marius Cristian Ciubotariu tbh I didn’t mean it literally, more hold with a long term horizon in mind and sell when the business outlook changes negatively.
Some things like an ETF index tracker (I.e S&P 500) there’s no point in selling until retirement or for the distant future as it will tend to always rise in the long term
Infant Investors Just make sure when you distribute your asset it has not dropped in half due to periodic crashes there’s always the risk for the folks to trusting the market too much
I sold a stock to soon. The company was in a huge struggle but it had a history of being great and I liked the CEO. I bought 1500 shares at $6.23. I felt it was worth at least $10 per share. Well in a matter of weeks in ran to $7.23 per share. I thought it ran to far to fast so I sold and made $1500. Months later it went to $13 per share. So had I held I would have made about $10000 instead of $1500. Can anybody guess the stock?
It’s close to the answer I was looking for but not exactly. My question is how I can buy a Ferrari if I never sell a stock? I’m ready to hold my stocks for long and also forever but how can I encash it for a better living standard? Not everybody is like Warren Buffett to stay in the same house for 50 years or eat the same breakfast. I’m failing to understand how to get some hard cash in hand to spend if no stocks are sold. I just don’t want to die handing over all my money to charity, Even Warren says not to compromise with the living standard or requirement and to do donate when surplus amount of money is left in the hand. But how how how? Can anybody answer?
Thank you for making this video! Have learned a lot from watching your videos:)
Bought msft at 33. Sold out at the first week of crash in Feb 2020 @155. Now at 185 as I type. Why oh why didnt I hold.
You could still buy back in. I think it will drop again to the 170s
good pointers thank you.
I really needed this. Thank you!! 👍
First! Big fan Phil!
Made the same move on cmg. One of my biggest mistakes was to sell pcg after a doublebager, when they filed chapter 11.
I should have listened to Peter Lynchs advice about utilities in „beating the street“.
Never!
Honestly i went a different route. I know myself i don't have the patience to do homework on one stock. I invested 80% in the Total Stock Market Index. That way i get Large,Mid,and small caps. Then i put 20% in the International Market. I took a more passive approach. My investing strategy is similar to the late great Jack Bogle. Using his words why look for a needle in a haystack when you can just buy the haystack. GLTA
It's just because the higher the risk, the higher the reward. If you want to make a very good return on your investment in 10 years not 40, investing in a few good companies using Warren Buffet's strategy is the way to go.
Warren recommends buying the S&P 500 if you can't be bothered to learn how to invest.
@@Rugbystu14 Do you know who Jack Bogle is. Why do you think they call it the Total Stock Market Index. Every stock you own i own my friend.There is more rewards in single stocks. But with my way when you make money i make money. When you lose money i still make money.
I needed this right now
Sometimes (especially when you're new at investing) you just make mistakes, and it's just best to strap on a parachute and bail out. That's not being emotional. That's being realistic. Learn from your mistake, take your lumps, and move on.
So basically it's a toss up. The stock might go up or go down. Sell, take your profits, and don't worry about the money you leave on the table.
Liked & Subscribed👍
Great video, thanks.
Sold After Pay at aus$20 when the treasury yield curve inverted, made aus$2.5k. And it shoot up to $29 in a month. Missed out aus$10k. :(
You can say that just about everything performing stocks like Amazon or Priceline no one can catch every price move like a machine
Bought ServiceNow at 170, sold at 185 (expected another dip to get back in). It's now at 340 :/
Yes i did, so many times
Chipotle is over 1200 now!😳
Great video💪
i'm sure he talked about Chipotle, sold at 500$ :))
Manh Linh Doan he did
Lol
I sold wingstop recently. 120 pe and still going up.