When to Sell

Most people are very good at buying things. They spend weekends researching the best toaster, the best car, and the best vacation. But they have no idea when to say “Goodbye.” They are paralyzed by The Stomach vs. The Brain conflict.

Peter Lynch, a man who knew that a winner is only a winner if you actually keep the money, realized that selling is an art, not a science.

The Broken Story

You should sell a stock when the story changes. If you bought it because the PEG Ratio was 1.0, and now the PEG ratio is 4.0 because the price has gone up twice as fast as the earnings, the story is expensive. You should sell.

Most people wait for the price to drop before they sell. They want to “wait until it comes back.” This is a very efficient way to watch your money disappear into a black hole.

The Smartin Discipline: TSLA

Look at Tesla in 2021. The price was soaring. The story was “Global Domination.” But the PEG ratio was in another solar system.

• Smartin Roast: If we ran the Smartin App then, it would have told you that while the cars were great, the valuation was a tragedy waiting to happen. The story was getting expensive.

When the story breaks, or the price gets too high, leave.

👉 Download Smartin: Quick Stock Ratings on the App Store today