Focus on Value, Not Sell Targets

Article Excerpt

We’ve often pointed out that perhaps a third of your stocks will perform much better than you expect. Telus, up nine-fold from its 2002 low, is a good example. It’s also a good example of why we never set target prices for our recommendations. Targets spur investors to quit buying or even sell our best picks way too early. If we had to offer a sell target for Telus in mid-2002, we might have guessed $10 — even $15. But if you sold at that price, you’d have missed out on the subsequent rise to recent highs near $50. That’s why we focus on investment value. It’s a far better tool than sell targets for filling your portfolio with performers like Telus. Telus…

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