Warren Buffett: The 3 Times When You Should Sell a Stock

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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.

[andrewmeyer]

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.

[sunnyhing]

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.

[VisionYpensamiento]

Thank you so much for this channel! Not only the content is amazing, but also the way it's presented is priceless

[RisusShorts]

Thank you for your content, i really do enjoy your honest and actualy usefull knowledge.

[milakarens]

"The stock market is filled with individuals who know the price of everything, but the value of nothing." - Phillip Fisher

[hrp]

Recently found out about your channel. I truly appreciate your videos. Thanks for sharing such content!

[kenichi]

warren: "when a single holding gets too big"
also warren: 47%+ of his portfolio is apple

[jackjia]

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.

[micked]

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!

[McAngryface]

My takeaway from the video is to do what you want when you want and justify it years later after you've made gains.

[daveclark]

I always like to hear Warren Buffet's thoughts on buying and selling. Thanks for sharing! 👍

[prakhargupta]

You are the most dedicated warren buffett follower I have ever seen. Learning a lot from your videos.

[ThisisBeekeeping]

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?

[nemaianand]

Your channel has taught me so much. Please keep posting!

[thilinawelagedara]

Very very valuable content. Appreciate your efforts on providing solid points and presenting them in such an interesting way.

[andersniemi]

I finally found a stock market YouTuber who isn't a total numpty.

[yuhuat]

Like the overall write up in words as summary after watched the video 👏🏻

[WhyDoWePlay]

This is such a great and simplified video for the macro-economic and psychological factors that define when you should sell.

[djpstacked]

Excellent well put together video. Subscribed 😃👍

[Falnky]

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!