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