Ritholtz on the Question of When to Sell Stocks

The decision of when to sell a stock, according to Bloomberg columnist Barry Ritholtz, is “perhaps the most overlooked and underappreciated problem in finance.” Ritholtz provides a list of questions for an investor to ponder when attempting to make what can be a difficult and complex decision. These include: What is the basis for the selling? In most cases, Ritholtz argues, clients cite news headlines or emotional reasons behind their desire to sell. “Experience teaches us,” he asserts, “that most of the news is old and is already reflected in stock prices and is not a credible reason to sell.” […]