Questions regarding when to sell

Q & ACategory: QuestionsQuestions regarding when to sell
Daniel Choo Zgi Hung asked 5 years ago

Good afternoon KC and Peter. Great and detailed video, really love the effort u put into this course.
My question is: what makes you sell Dutch Lady in such a short while, like you said in a video where you bought it at RM12 and you sold it at RM18? Because we are investors, and we should be going in with the intention to hold it for life, like in the way you put it, marriage. Still, I find it contradicting that you sell it it such a short while. What I would like to know is even though we should hold long term, shouldnt we only sell when we see company performance declining, directors doing some sketchy stuff etc?
Thank you, would love to hear from you soon!

1 Answers
Peter Lim Staff answered 5 years ago

Hi Daniel,
We buy with the intention to hold for life. But that doesn’t mean we should hold for life regardless of whatever happens. Just like marriage, you get into marriage with the intention to get married for life, but that doesn’t mean you should stay married regardless of whatever happens. There could be cheating, gambling habits, adultery, etc.
Rise from RM 12 to RM 18 is 50% gain, and while i sell is not because of the 50% gain, but i sold because i use that capital to buy other companies which i estimate is a better buy than the one i have.