For some stocks I know the answer – never. Companies I own such as TD, GWO, POW, CSH.UN, TRP and PFE I don’t ever plan to sell. Now some of you may be wondering “Why on earth would I plan on holding those to the grave? Won’t there be an optimum time to sell and rebuy?” Well ya there probably would be an optimal time but if your smart enough to figure that out than stop reading this stupid blog, go make a few hundred million dollars and retire in luxury. Additionally, I plan on holding the above stocks for their cashflow. For example, I’m now making 6.1% in dividends from TD (based on my initial buy price 5 years ago). What kind of yield will I be making in 2012? I’m betting significantly higher than 6.1%, not a bad return in my opinion plus the share price has appreciated about 150%. Now compare that to a 10 year government bond maybe 5% (if your lucky).
Now that brings me to all my other holdings. The more cyclical, resource based companies. Historically, I’ve been pretty good at buying (and mediocre at selling) but how do you know when to sell. Who hell the hell knows? But if you want my opinion on it I think that oil and gas stocks are going to be range bound for the next little while. So after writing this I’m going to take a good hard look at TLM and decide if selling some might be in order.
Remember you don’t make anything until you sell and there is no shame in taking a profit.
(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice.)