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I want to try a stab at this one even though I an knew.
I have read the book and intend to read it again.

I do believe valuation must be taken into consideration. Stocks can not have infinite value.
I would look for indicators as to when to sell. To me the biggest sell indicator of all time was when some brokerage firm came out with an opinion that QCOM was wort $1000 a share. On what rationale was this made?
It did suck the last round of speculators in on the stock, thinking such gains could go on forever.
I considered shorting it. Not usually wise when it comes to gorillas.

I read on the Fool board that the price of $1000 would require QCOM to license this technology to everyone on the planet CDMA technology within 3-5 years. What chance is there for this to happen within that timeframe? The price of a phone exceeds the monthly, perhaps annual income of many people in the poorest regions of the world.

I now understand that there are other uses for this technology, but were they attainable in a reasonable timeframe to support a price of $1000. The market clearly said NO!

One should always evaluate the price of a stock, compared to SUBSTAINABLE growth, to see if the price merits a buy or a sell. I believe many could have timed an exit on QCOM better than they did.

Admittedly this is easy to see in hindsight, and perhaps easier for me to see at the time because I did not have QCOM, nor had I read the bible at that point.

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