The Meb Faber Show - Better Investing Mebisode: When to Sell
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Oct 24, 2025 Dive into the intricacies of when to sell investments, exploring why many investors underestimate this challenge. Patience is key, with a proposed minimum holding period of a decade to assess performance effectively. Meb dissects common emotional triggers that lead to rash decisions and emphasizes the importance of having clear sell criteria. He also illustrates how remarkable investments can initially appear to be losers. Learn practical tips to manage your portfolio and maintain discipline during tough market times.
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Commit To A Multi-Year Hold Period
- Give new investments a long runway and plan to hold for many years before judging performance.
- Consider a minimum horizon like 10 years to reduce noise and avoid premature selling.
Short Windows Trigger Regret-Fueled Moves
- One year of bad returns is usually noise and can trigger regret-driven mistakes.
- A written long-hold plan provides perspective during initial losses and prevents impulsive selling.
Short-Term Underperformance Can Mask Winners
- Good investments often underperform in many individual years, so short-term results mislead.
- Randomness causes winners to look like losers for extended stretches despite long-term success.
