Value Investors are those who like to buy stocks that are selling below net tangible assets, selling at a discount to book value, below the intrinsic value with a wide margin of safety, etc.
OK, you people are great at buying.
Since I'm not a "Value Investor", I've a question to ask you all:
"When do you sell? When the stock is fully valued? Or when it's overvalued?"
"Or you never sell even when it's overvalued? You just buy and hold till the price drops back down to your original purchase price?"
Singapore Man of Leisure (welcome to my blog; just google it!)
I usually sell when the PE ratio has gone above 30, and there is an obvious steep climb in the share price.
Or when the management starts to reward itself heavily even the company is not doing well.
Or when significant numbers of Directors start selling their shares.
Or when there is significant dubious business dealings going on with the company.
Hello Lizardo,
Ah!
You have a selling plan involving both quantitative and qualitative indicators ;)
Hi Lizardo,
Do you sell as long as any of the conditions hold true?
E.g. a significant numbers of Directors start selling their shares but the PE ratio is still very low.