Warren Buffett: The 3 Times When You Should Sell a Stock
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- เผยแพร่เมื่อ 26 พ.ค. 2024
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The decision to sell a stock can be rather confusing. Do you sell it because it has gone up, to secure a profit? Do you sell it because it has gone down, you know, cut your losses short? Or perhaps you should sell it because it has been flatlining while all your friends are getting rich on bitcoin?
Luckily, Warren Buffett, the oracle of Omaha and the sage of securities, has got us covered on this subject. The world’s greatest investor has discussed the art of selling during quite a few different occasions. In this video, you’ll learn three practical situations in which it is time to sell you stock market holdings - Warren Buffett style. By the way, if you’ve only heard what Warren Buffett has had to say on this topic more recently, you are probably doing it wrong.
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Warren Buffett when to sell a stock timestamps:
00:00 Intro
02:05 1. When Something Better Shows Up
05:59 2. When the Economic Characteristics of a Business Change in a Major Way
08:21 3. When a Single Holding Gets Too Big
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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.
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ok
Such a great video. Thanks for sharing it with us!
@The Swedish Investor
The third point wasn’t very clear, though. If it gets too big, what’s the problem of owning it?
"The stock market is filled with individuals who know the price of everything, but the value of nothing." - Phillip Fisher
Yes it’s because of this single fact that most times best investment strategies can turn into the worst if you don't have the stomach to see it through
Absolutely true. I have lost money with this singular mistake, and since then i've been very scared of jumping into the market. Most times, i cannot identify trends, i am looking for a reproducible passive income strategy that will supplement my wage income.
@@nicholebishop3430 Not understanding the trends is a big minus when you want to jump into the market. If you are not conversant with the markets, I'd advise you get some kind advise or assistance from an Investment coach. That’s the most ideal way to jump into the market these days.
Investment coaching sounds like a great idea, thought about it before but never knew how to go about it, Have you used a coach? what is the experience like?
Janet Lee Tracy is currently my family fin. broker. Her delivery percentage is A-list. you can look the name up and contact her through her website.
warren: "when a single holding gets too big"
also warren: 47%+ of his portfolio is apple
He followed stock for decades before investing.
Right?! "Too" is relative.
Imagine he had 47% Tesla... Now buying BRK is basically buying Tesla lol
He keeps it coz apple is still relevant, unlike the age old newspapers which is relevant back in the day
@@kaydens6964 Berkshire stock outperformed apple last year tho
I prefer Peter Lynch's answer for this question in One Up on Wall Street.
The reason to buy the stock = the reason to sell the stock.
If the stock is no longer to fulfill the criteria/reason to buy, then it's time to sell.
Another answer will be when the investment has reached a personal goal.
For example, the goal is to reach $500,000.
When the goals are reached, the investor will sell the stock, buy something safer and less volatile like ETF or bond, and let compounding do the work.
The idea is when you have a very large capital, you don't need 20% annual return, as decent as 6-8% annual return are good enough which is fairly safe in a typical 60% total market ETF and 40% bond.
Thanks for watching, you can leave a message on WhatsApp for my Analyst to guide you through >>>>>>> +1 (570) 393-5348.
My takeaway from the video is to do what you want when you want and justify it years later after you've made gains.
The hardest part of this video for me to actually apply in practice is consistently "would I buy more now if I didn't already own the stock". I never have this problem when a stock I have confidence in goes, and I can simply get more shares and lower my average. Only when a stock I own is doing well in comparison and I would be averaging up by buying more.
Hoping this aspect of my investing career improves with time.
Try setting rules for yourself to stop emotional decisions. An example is capping out a single stock purchase at 20% of your investment capital. If the stock price goes down, you can buy more to get back to 20%. If it goes up, you can't put more into the stock because it exceeds 20%. Be careful setting rules, because they can limit your options. But rules are a great way to screen out human emotion, confirmation bias, and sunken cost fallacy that you're not even aware of in your subconscious mind. Rules that are well thought out will eliminate your biggest weaknesses as an investor.
How should I average up?
Thank you for your content, i really do enjoy your honest and actualy usefull knowledge.
Thank you so much for this channel! Not only the content is amazing, but also the way it's presented is priceless
Recently found out about your channel. I truly appreciate your videos. Thanks for sharing such content!
Warren Buffett said, "I had more ideas than money back then and have more money than ideas now." in a more recent interview. That's why his selling strategy changed. He doesn't need to sell anything to get cash to buy good companies these days.
You are the most dedicated warren buffett follower I have ever seen. Learning a lot from your videos.
Thank you so much Prakhar Gupta, glad you enjoy the videos! There will be more to come! 🙌
I'm so happy I just got into crypto trading and I made my first profit, I wish I knew about crypto earlier I would have made a lot of money by now
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Crypto is the new gold
@@jamalmckenzie5319I wanted to trade Crypto but got confused by the fluctuations in price
@I LOVE PROSPERITY You can reach him directly by his cell number or leave a message on whatsap.
Excellent content, mate. Presenting this quality content that succinctly takes time to prepare, write storyline etc. Much appreciated and taking many golden nuggets away from your videos, of course courtesy to the big brains & hearts of Buffet and Munger!
When 16 years old tiktok "traders" are speculating which crypto Elon Musk is gonna tweet next, you know it's time to get out
Let's enjoy the crypto 🐻 market with friends and family 👍🙏☺️
I overheard my co-workers talking about investing in crypto...I work at a super market 😐
Excellent video. Sound strategy for trading stocks. I used the advice to change my holdings.
So, Erik, would you reveal the stocks you invest in?
I always like to hear Warren Buffet's thoughts on buying and selling. Thanks for sharing! 👍
his thoughts are something, his actions are completely different
One of the very few channels that really gets stock investing
Thank you for your feedback, endeavor to write as soon as for more info....
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I finally found a stock market TH-camr who isn't a total numpty.
Your channel has taught me so much. Please keep posting!
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Best part is at 10:00 😊
Like the overall write up in words as summary after watched the video 👏🏻
Nicely done! Very clear and informative video. I love it! Thanks.
Excellent well put together video. Subscribed 😃👍
Easy. Just before the crash!
Hindsight is 2020
Bahahaha!!!!
😂😂😂
Thanks now i know
Actuallyyy...at the peak, the highest price. Ez
Buffet rarely sells. Once he picks companies he holds for years or decades.
He also has a stock picking process that is second to none
@@philswensen5863 except he hasn’t t beat the s&p for over a decade
@@caelahrens9767 would you rather invest in berkshire in the 90s or the S&P? He may loose here and there but he has obviously crushed the market, but also managing a $700b hedge fund is different than managing a few hundred grand in a single portfolio. The market is also over speculated at the moment is berkshire stock aswell?
@@philswensen5863 I would’ve rather invested in the s&p because it gains more value over time. It doesn’t matter if there are more bumps because it still goes up faster thank Berkshire.
@@caelahrens9767 berkshire has increased nearly 6000% since the 90s whereas the market rose about 1200%. See how long it take to get a net worth of $100billion net worth using the index. A great investment for most but buffet beat it by far
Such a timely video!
Very very valuable content. Appreciate your efforts on providing solid points and presenting them in such an interesting way.
Appreciate for your feedback! And thanks for watching for more info.
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The more I listen to warren buffet the more I think he’s actually not that smart. His quote at the beginning, in *aggregate* a stock definitely does have a ‘memory’ of what was paid for it. That’s how and why we can track the cost distribution. It can queue you in on psychological buy/sell moments and the overall enthusiasm of the shareholders.
This channel is just fantastic!!
Love every video.
Glad to hear that you enjoy it Tony Harion! Cheers for the support 🌟🌟
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Just the video I needed, great job!
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Excellent video, thanks for sharing
Very intersting ! ( all along this video sound goes up and down, 5:06 to illustrate, otherwise thanks a lot for your videos, often it's books I refrain to open as quite huge, your videos always come the best moment !)
Cheers KOLIAT! Yea, that one was on purpose actually 😂 But I appreciate the feedback. Are there any other places in the video which you thought about?
This is such a great and simplified video for the macro-economic and psychological factors that define when you should sell.
this does not sound simple at all. Like the part - sell when something economically changes. How to understand if that is big enough change?
@@Name-lt2tz if you knew that you would be a billionaire my guy :)
Extremely well produced, compounded and straightforward video ❤️
Thanks for watching!
Invest in B .TC & ET .H
To profit from the dip and earn more with the trading strategies of my Trusted portfolio manager and mentor (Joshua S. Logan) he's really good at what he does.
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+1 2: 0: 8: 5: 0: 0: 0: 5: 1: 5; 4.:.
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Thank you for your video again ! You give so much value :)
It's nice to know that when a stock has gone too big, we have to sell it..
What would actually happen if an investor does not sell a stock that has gone too big?
Your take away suggests that the investor would lose effective diversification.. But if the company would always prosper, what is the danger?
And another question, if the investor has already sold the stock that has gone too big, what would be the next right thing for him to do? Divide the proceeds into certain stocks?
Will it be safe to leave behind a large chunk of the proceeds and reinvest it back to the stock that he sold? Or should the investor just reinvest a tiny amount in that former stock?
Thank you for your videos. They are great. 👌❤️
Thanks for watching, you can leave a message on WhatsApp for my Analyst to guide you through >>>>>> +1 (570) 393-5348.
Valuable, in depth advice, thanks.
Thanks for watching and comments, We will introduce you to something totally different and quite profitable like .BTC. Just DM
*+ 1 6 8 9 3 5 6 8 7 8 6* @ W H A T S A P P ..
I'm a newbie subscriber to your channel.....Cornelius Vanderbuilt and Warren Buffet are my mentors too.
Great video! Buffett is the greatest of all time !!
I had intel for years and it just wasn't getting to where i thought it would so i sold my shares and got AMD and some Nvidia..... The best decision i have made yet in my investing so far.
Hands down very useful videos, I made notes as well
"Sell good companies when you have a very strong reason to believe they will no longer be good companies"
@The Swed!sh Investór scam
@@cybercomets7260 how ?
Yeah that’s the stupidest shit I’ve ever heard because if you think it will no longer be a good company the public does to so that would be reflected in the price
@@louisconcordia6115 well I heard that from Warren Buffett so....... You're calling one of the greatest investors of all time stupid?
The thing is that you never know when a good company turns bad, there will always be insiders miles ahead of you and by the time they dump the stock you are screwed. In my eyes there is no shame in knowing when to stop. Take the profit, or the part you invested initially so you are even, and re- invest that.
Great content. Surprisingly I am at this point now. I am eager to keep my stock but also still keep searching maybe there is something better out there 😊
Well done, great content!
Thanks, very useful
Always eye opening
My favorite channel
Very true, his channel is incredible and has a lot of good content
Wow you actually read the buffet's letters. Hats off!
This is really insightful
Love the Dark Side of the Moon reference at 2:29 :D
I see a lot of things I learned from one of my favorite books, "Thinking Fast & Slow" by Daniel Kahneman, reflected in the advice of The Swedish Investor and Buffett. People have intuitive processes like loss aversion ingrained in us that, while once evolutionarily advantageous, can really get in the way of rational decision making in a field driven by mathematics like investing. Learning to recognize when your decision making is intuitive rather than rational is so key to success in the stock market!
Oh god, it's perfect!Thank you dude
Tack för en bra video!
just when i was thinking about it, this shows up recommended!!
Great videos 👍🏼
Thank you
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Hade varit bra om man fick lite inblick på vad som man borde läsa osv…
Great Vid!
Another great content! 🔥
ok
99% of my selling is due to if something grows to the point it becomes a higher % of my portfolio than i am comfortable with, i trim it down
Wonderful video
Please do a video on Conquer the crash. This will be most relevant to current time. Thanks for the great videos!
Thank you for your feedback, endeavor to write as soon as for more info....
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good stuff!
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For future guidance and Info
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Nice piece of information.
Can you do a video on: the little book about value investing
Thanks sir
Thanks for watching, you can leave a message on WhatsApp for my Analyst to guide you through >>>>>>> +1 (570) 393-5348.
*Great Job! - Nice Information - Thanks a lot!*
good stuff and research
I'm confused if we don't sell when it goes up how we would come off with a profit as well as if I've bough a stock for $1,000 and if I sell for $500 just to buy something better how I'd come with a actual profit at the end? Isn't in stocks the same like buy cheap sell high?
Yeah lol. Basically explains nothing.
Then let me explain it to you. You bought for 1000$ something that is now worth 500$. What you bought it for no longer matters. What matter is, what get's you faster back up to 1000$.
Great vidéo.
OSP on the ASX. 99% down. Good future investment?
Would love a Summary of Turtle Traders or Trend Following by Covel in general👀
Love your channel!
Greetings from Switzerland
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IDK. If a stock goes up and up and up there is a 4th reason to sell it. It's now over valued. Determining if a stock is over valued is a hard thing to do, but if you think it is at the very least put a stop limit on it. Now a days you can put a TRAILING stop limit on it, which will move up if the stock moves up but stays put if stock moves down. This way even if you are right about a valuation being too high you can still ride any potential up side. Anyone see a flaw in that? If so please comment. But again, properly assessing that correct valuation isn't easy and full of potential error. Ditto regarding cutting loses. But when you bought it you hopefully did or at least looked up valuation estimates. If nothing has changed since then hold or at least re-evaluate your valuation.
Thanks for your wonderful explaination sir, 🙏👍♥️
Tack sa myckett. Hey, I've visited the town of koppaberg. It's very nice. Tastes good too ;)
Really enjoying your content and channel. Thank you!
Beautifully narrated 👍👍👍👍👍
Thanks for watching, you can leave a message on WhatsApp for my Analyst to guide you through >>>>>>> +1 (570) 393-5348.
Excellent
the best video i watched today
Thanks for watching!
Invest in B .TC & ET .H
To profit from the dip and earn more with the trading strategies of my Trusted portfolio manager and mentor (Joshua S. Logan) he's really good at what he does.
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Regarding Buffets idea that he rather hold onto a "good company" than sell it. I think Buffet is speaking not so much about a stock but a company he bought outright and gets at least a piece of the profits, unless he bought stock for it's dividend. Then it makes sense to hold onto that steady output of money. For most, buying a stock, especially a growth only no dividend stock is about realizing the appreciation at some point. Right? What's the point of holding a stock that pays no dividend FOREVER. To give it to your hiers maybe? Other than that you should grab that profit at some point. Unrealized gains need to be realized at some point or what's the point?
********10/10 Thank you for sharing the fundamental advice from Warren Buffet with real life examples tied to them
I'm also doing a little incremental sell offs, on gains, whatever gains I sell it off. to pay off credit cards. I'm only temporarily retired, at 50, I'll be back after.
Kul med en stor svensk kanal!
Great video 🙏🏽 I’m from uk and love kopperberg, good on you 💪🏽🇬🇧
Stability always pays off . Like treasury bonds 😎
Upgrades is so scientific 😂👍😇
Great video mannen!
I have a lot of cash too besides my stocks, so I don´t need to sell share A in order to be able to buy share B instead. What should THEN be my criteria of selling?
Hey Great Dane! I think I understand your reasoning. However, as long as you have at least some diversification (see one of my recent videos on that topic if you haven't) you might still be better off putting in even more into stock B. No matter if cash is invested or not, it is always favorable to switch into your best bets. Unless you think that you'll be presented with even better bets very soon due to a crash of course. That's a tough one to pull off though. Cheers.
@@TheSwedishInvestor Thanks for your input 😉 My situation, however, is actually a bit more complicated than described, as I am also holding cash because I am looking to buy a house in the "near" future. Unfortunately there aren´t many houses up for sale near where I live, and those that are for sale do not meet my criteria for buying. So it could take 1 or even 2 years before the right house turns up and before I need the cash. In addition, where I live we still pay negative interest on our "normal" bank/savings accounts of -0,7% if you have more than the equivalent of 8.500 EUR in your account. So it is a bit complicated. IF the right house turns up that I can buy, it would be sad to have to sell all my stocks with a loss, if they just dropped 20% after a correction. But once again, thanks for input 😀
Could you adivse the soucre of the third point in your presenation, "when a single holding gets to big"? I am not aware Buffet ever said anything like this.
New subscriber here‼️🤙
What if the intrinsic value of the investment dropped lower than your investment price? Or margin of safety squeezes?
Almost never unless something changes about business
Thanks.
Great video. Thanks to you, I know how wrong I was.
great
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As I saw the letters getting older and older at one point I asked myself how old is this man?? :D I knew that buffett is old but not that old
good video but you missed 1 thing. buffett didn't just sell airlines he sold a bunch of other stakes in other companies as well, which was not for the same reason as selling the airlines one (economic conditions changed). quoting buffett from a CNBC article i'm reading: “I mean, what we fear is an irrational bull market that’s sustained for some long period of time.” and as you remember he also said "be fearful when others are greedy, and be greedy when others are fearful". Why did buffett sell stocks like goldman sachs or jpmorgan in 2020? he also sold some amazon and apple according to the motley fool article i'm reading. why did he reduce positions in Apple and Amazon? why not buy and hold those? since i don't think apple and amazon's economics conditions have changed and i don't think anything can stop goliath companies like this...
See 1 year chart on MOD. Nice smooth. 184% run. At that price possible to double again.
1. do NOT be emotional
2. SELL when there is a better option
3. buying undervalued products and then selling then once corrected
4. when the economic charector of the business changes negatively
5. fundamental news happens rarely so selling on scary news is a bad idea
6. when a single holding gets too big e.g over 40% of holding then sell
Don’t just do something, stand there!
How many percent 20 or more of increase i should sell
How does warren buffet place a value on stocks?? Like is there a formula??? How does he know how much more undervalue it is and place it in a numerical form