The Investing for Beginners Podcast - Your Path to Financial Freedom Back to Basics: Sell Rules
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Jul 18, 2024 In this podcast, Dave and Andrew discuss essential sell rules for investing, emphasizing the importance of slow and strategic decisions. They cover topics such as selling based on negative earnings, market reactions to dividend changes, risks in investing in metaverse, and CEO capital allocation. The hosts caution against knee-jerk reactions, share a cautionary tale on regretful stock sales, and stress the need to avoid financial red flags. Tune in for valuable insights on refining your investment strategy.
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Sell Negative Earnings
- Sell stocks with negative earnings to avoid potential bankruptcy.
- Consider exceptions for companies where negative earnings are part of their business model.
Review Investment Thesis
- Sell a stock if your investment thesis changes or proves wrong.
- Document your initial rationale for buying to objectively assess changes.
GameStop Misstep
- Dave Ahern lost significantly on GameStop before it became a meme stock.
- He sold because they shifted from their initial promising strategy.