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"Is when Graham mentions fair value does he mean once the stock has reached 100% of net working capital or a 50% increase in its stock price? Or does it both work out the same?"


I don't remember anything specifically written by Graham that addresses a sell point in that much detail.

It has been Warren Buffett's opinion for many years that the reason Graham didn't earn more on his investments is that Graham would sell a stock once it reached a certain level. While Buffett may hold onto certain stocks too long, It seems that Graham rarely held long enough.

In my investment experience, I have sold 2-baggers and 3-baggers after a few months only to watch them grow into 10 baggers over a few years. Meanwhile my money was sitting on the sidelines waiting for another good investment.

Given this - I'd suggest holding onto a stock that has reached it's full value until the day you are ready to trade it for a wonderfully undervalued stock. Don't cash in until you have a better deal.

Ad Sach - who is still trying to determine what intrinsic value is
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