When to Sell Stocks

  • The Intelligent Investor fears a great booming economy because that is when we could lose everything.

Situations to look into:

  • Company loses its Durable Competitive Advantage
    • Loses its monopolistic grip in its industry
    • Accounting fraud
    • Bad strategy: Getting into a business that doesn't relate to their core business
    • Unable to change with the times
  • Mr. Market is over hyped about a stock or a sector
  • Economy is booming
    • Spotting market top

 

Accounting Fraud

Accounting Fraud is the deceitful diddling of financial records to make a company's condition seem okay or better than what it actually is. It is the result of corruption.

Thieves are like roaches. They work in a large group. If the CEO of a company is corrupt, many in the company are also corrupt. A CEO can only achieve his bidding if he has minions of plenty perpetuating him. Any news or indication of fraudulent accounting practices ignites the Intelligent Investor to sell the company's stock or its corporate bonds. We simply don't invest in a shady business run by crooks.

 

My Financial Analysis of Stocks

  • Accumulating ViacomCBS (VIAC) We believe there is a greater opportunity in ViacomCBS (VIAC). We have been accumulating the stock for the past year. Our analysis is a mere common sense. During the course ...
    Posted Jan 25, 2021, 5:25 PM by Intelligent Investor
  • Sold AXP, BRK.B, JPM, and WFC We sold all of our shares in American Express (AXP), Berkshire Hathaway Class B (BRK.B), J.P. Morgan (JPM), and Wells Fargo (WFC).American Express (AXP) - We just do ...
    Posted Jan 19, 2021, 7:53 PM by Intelligent Investor
  • We Have Bottomed, Next Stop Dow Jones 100,000 The bottom of this recession was on March 23, 2020, when the Dow Jone hit 18,214. This recession was short-lived, it only lasted about 3 months. Our Gross ...
    Posted Jun 8, 2020, 12:32 PM by Intelligent Investor
  • Archive: My Stock Research 2019 View My Analysis: My Stock Research 2019
    Posted May 21, 2020, 9:21 PM by Intelligent Investor
  • Archive: My Stock Holdings 2019 View My Analysis: My Stock Holdings 2019
    Posted May 21, 2020, 9:21 PM by Intelligent Investor
  • Another Dead Cat Bounce, We Haven't Bottomed Yet, Goldman Predicts S&P 2000 The Dow Jones has rallied to 22,327 over the past several days. However, we believe this is another dead cat bounce. We sold all our shares of United Health ...
    Posted Mar 30, 2020, 8:35 PM by Intelligent Investor
  • Coronavirus Is The Black Swan Event That Ended The Bull Market In 2020 A Black Swan Event is an unpredictable event that causes catastrophic damage to an economy. A few days ago, we wrote an article describing the coronavirus as a Black Swan ...
    Posted Mar 18, 2020, 9:21 AM by Intelligent Investor
  • Beyond Meat (BYND) and Dunkin (DNKN), The End Of A Tale Of 2 Speculative Stocks During a recession speculative stocks get pounded down to the ground. Thus, we sold all of our shares of Beyond Meat (BYND) and Dunkin' Donuts (DNKN). Beyond Meat is in ...
    Posted Mar 18, 2020, 9:22 AM by Intelligent Investor
  • The Dow Jones Rallies 1294 Points, Sold More Stocks On This Dead Cat Bounce The Dow Jones jumps 1294 points a few days ago, however, we believe that this rally is a "dead cat bounce". We have to wait for the next quarter's ...
    Posted Mar 16, 2020, 9:56 PM by Intelligent Investor
  • We Panic Sold Today was a really bad day in the market. The Dow Jones opened at negative 1000 points. It seems as if the coronavirus is gaining steam and is about to ...
    Posted Mar 18, 2020, 9:23 AM by Intelligent Investor
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