Yield. Valuation. Fundamentals.

Sell Decision

Three Equally Balanced Factors

Yield

  • Yield on stock falls below the acceptable limit

Relative Valuation

  • Relative price target has been achieved:
    • Expected upside now half the downside
  • There are other stocks in our buy process which have better risk/reward prospects

Fundamental Catalyst

  • The company is not performing as expected
    • Review fundamentals and valuation target
  • The sector or country begins to look less favorable
    • Review fundamentals and valuation target

Decision

  • If one of the three criteria is violated, the stock is sold