UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: zol Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81340  
Subject: Re: it ain't a loss until you sell.... Date: 9/19/2007 11:04 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
<I've always believed that the time to sell any holding is when you have a better place to put the money.>

I disagree. I feel that the selling of one asset and the buying of another one should be two actions that are arrived at totally independently. Otherwise you could easily end up not making a sale that you should make simply because you do not have another purchase lined up. That can be dangerous to your financial health.

We should not confuse inaction with not making a decision. Consciously, or subconciously, you have made a decision with the inaction. You decided that the company/fund in question would have a return at least better than 0% (it will not continue going down). Otherwise you would have sold and kept the money in cash. To me, there is always an alternative.

Where to put that cash to work is another story. The OP already identified several funds for his/her overall financial plan. My suggestion was to use those as alternatives for the money after the sale. As I mentioned earlier, if the return for the old funds is expected to be better than the return for the new funds, then not selling is the right choice.

- zol
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.