1-For me ,it is very difficult to time exit.
When fundaments deteriorate, results are poor for continuous 2-3 yrs, then i will exit
-Franlly speaking ,at present it is big enigma for me
2…If you read my initial posts, i have exited from my few early stocks which were bought by mistakes like 8k mile, dhfl, skipper etc with loss.
3…If you read 100 baggers and book on philip fisher, they advise
“DURING JOURNEY OF STOCK LIFE, THERE WILL BE MULTIPLE TIMES WHEN ITS P/E RATIO WILL BE MUCH MUCH HIGHER AND VALUATION WILL BE VERY HIGH.
But they dont advise for selling stocks on high pe
There are only and only 3 reasons for sell as per these books
1…If fundaments deteriorate
2…If stock was purchased by mistake
3…Good opportunity available.
=But as per these authors, good opportunity may be misnomer or rarely available because most people like rising stock and people hat falling stock.
So people will switchover from their holding stock to rising stock
So, as per these authors High P/e is not reason for selling stock.However, contrary to this Pteter lynch advise for selling on high p/e ratio.
Let’s develop our own investment philosophy
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