In a very recent interview, super-investor Bill Ackman was asked: what are the red flags for you to decide to sell a company, even at a loss? Ackman had two main points to his answer, but also answered in a good amount of detail. He used his recent sale of Netflix as an example, after only owning the stock for a few months, which is unusual for him. His second point came in the form of some advice for retail investors about when to sell a stock, using Tesla as his hypothetical example.
Timestamps:
00:30 A remarkable business
00:55 Netflix Undervalued?
02:23 Ackman's Netflix investment thesis
02:50 A reason to sell
04:10 Another reason to sell
04:55 Predictability and risk profile
06:26 Ackman's advice to retail investors: Tesla hypothetical
07:16 Thesis twisting is trouble
08:03 On making investing mistakes
Related episode:
Bill Ackman: Why NOW Is A Pretty Good Time To Buy Stocks https://youtu.be/krSnhsGfKoM
The Bill Ackman interview clips referenced in this episode can be found on the Interactive Investor channel: https://www.youtube.com/c/interactiveinvestoruk
Disclaimer: I am not a financial adviser. This content is for education and entertainment purposes only. Do your own analysis and/or seek professional financial advice before making any investment decision.
