There are many skills in life that we struggle to master. Practicing effective time management, for instance. Learning to say no. Truly listening rather than thinking about what we plan to say next. Remaining positive. Knowing when to speak up--and, conversely, knowing when to shut up.
When it comes to investing, one of the toughest skills to learn is when to sell a stock. Successful money managers make it sound so simple: Sell a stock once it has reached your estimate of its intrinsic value. But that’s easier said than done. What if the stock still looks cheap relative to others in its industry? Or if its story hasn’t entirely played out yet? Or if you worked for the company or were gifted the stock and therefore have some sort of emotional attachment to it?
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.