The ins and outs … bad reasons to sell

Article Excerpt

Investors often ask, “When do I sell?” There is no simple, fits-on-a-t-shirt answer. But there are several things that should not, in and of themselves, prompt you to sell. • Weak quarterly earnings report: One quarter of weak profit may simply be a normal fluctuation. By the time the news of a weak quarter comes out, it may have already had its impact on the price of the stock. • Strikes: A single workers’ strike rarely puts a lasting dent in a company’s profitability. However, chronic labour troubles are a bad sign and that may be a good reason for you to sell. • Environmental, regulatory or anti-trust problems: These laws are complicated and constantly evolving through court and bureaucratic decisions, so it’s easy for well-meaning companies to run afoul of them. Also, unethical companies sometimes raise these issues to hurt their competitors. Knowing when to sell is the hardest part of investing. You’ll make your investment life easier and more profitable if you mainly choose high-quality investments with honest…