Portfolios are seldom static. We routinely tend to make changes when we find that our stock ideas have reached maturity in investment performance. The need to sell is often thrust on us by the market when valuations become unsustainable. But our choice of stocks plays a critical role in decision making. Also, the method and style of investing determines the frequency of portfolio churn. Long-term investing depends on how the portfolio is constructed.
Much as we would like to hold stocks for the long term, there almost always comes a point in a stock’s holding period when it is compelling to sell.
