Hi Sachin – I try to keep things simple
If you are a focused dividend growth investor like me, then the answer is ideally never (provided the dividends keep growing over a period + the company is fundamentally growing and sound i.e. good governance)
The capital appreciation while very important to track, is a by product (i guess i am in a minority here, however anticipating stock price appreciation is a wild guess at best. I am not great at chasing the next fad and have lost money trying to do it in my early investing years)
To give an analogy. If you have a house that is on rent, you keep holding the house as long as the rents keep increasing and the yield on invested capital increases. Once there is a better house offering a more attractive cash flow yield and growth potential you sell. Well governed companies that are battle tested over a period are hard to find so one holds on to them
Not sure if it helps, hope it provides an alternate view
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