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URL:  https://boards.fool.com/potentially-preachy-answer-if-not-applicable-no-34687857.aspx

Subject:  Re: Take some profit? Date:  12/7/2020  10:28 PM
Author:  FlyingCircus Number:  6077 of 6134

Potentially preachy answer. If not applicable, no worries, just skip it.
When people ask about this on any stock, I try to suggest a few questions.

What % of your overall portfolio is made up of the stock?

If it went down 25% tomorrow, how much would you "lose"? Are you comfortable with a retracement of that amount? If not, how much are you comfortable seeing disappear?

Do you need/could you use the cash for other purposes in your life - your real total "portfolio"?

FWIW: Well aware of the market euphemism "let your winners run, cut your losers", I frequently put in a trailing alert - a soft limit - about 10% below the close. If that alert is triggered, I look to see what's going on, and decide to put in another limit, or get out, depending on the stock.

Tesla is a growth company that's worth investing in. That said, there's a probability its best, explosive growth phase in the *stock* are behind it, as it is a manufacturing company and a car company at that. Sure, Amazon has blown up what, 2000% over the last 20 years? But that's simplistic - it's had several 80% drops along the way, a 40% drop as recently as Q4 19. Most individuals bail on those, and too frequently at what ends up being the bottom.

There's no harm preserving capital until a clearer picture emerges. Or selling most of an exploded position to maintain some interest in the company without being exposed to a valuation shock.

FC
2000 and 2008-9 survivor
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