Based on Morning Star report by Pat Dorsey
NOT a reason to sell:
Share price just went down 10%.
Good Reasons to sell:
1. Shares are overpriced.
Price appriciated far too much and far beyond anything reasonable. If you own a $1 really worth 50 cents, its time to sell.
2. Declining fundamentals.
Fundamentals were good when you initially purchased the stock, but over time the fundamentals of the stock/company has declined.
3. You were wrong.
You bought the stock based on certain calculations about the company, but didnt work out as expected.
4. Position too large.
Your initial allocation for the stock was 10% of portfolio, but now it has grown to a significant portion of your portfolio. Its may a good time to think about rebalancing the portfolio.
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