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Doubles
#1
Any thoughts on doubles?

Some say to take your money out and "play with the houses money"....

Some say "never sell"....

PF  up 97%

HD up 116%

BA up 112%

LMT up 120%

RTN up 101%

SWK up 100%

AAPL up 105%

MSFT up 132%

many more down....but just thinking out loud...

Pray for Vegas....

Rob
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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#2
I'm in the never sell group. If you did sell, what would you buy? Would the purchases do better than what you just sold? If they're in taxable accounts, why are you taking a tax hit?

I wouldn't sell just to sell. What if you sold a double that turns into a 10 bagger? As long as their fundamentals haven't changed, I don't see a reason to sell.
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#3
(10-02-2017, 05:03 PM)Robandcindy2 Wrote: Some say to take your money out and "play with the houses money"....

don't play.
invest.
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#4
The plan is to buy and one day live of the dividends. When I die, the plan is for the portfolio to continue to grow, until my kids retire and can live from it as well. Hopefully future generations will be smart about managing it the same way... I'm sure by the 3rd or no later than 4th generation, some degenerated knucklehead grand grand kid will spend it all on women, drugs or worst... but let's hope for the best.

So short story, I don't see reasons to sell unless the fundamentals/market dynamics change dramatically.
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#5
I don't believe in taking money off the table either. I have 25+ years until retirement, why would I want to sell out of my best stocks?

My biggest gainers since building my portfolio in early 2013.

AAPL - 148%
CBRL - 115%
DLR - 147%
DPS - 107%
LMT - 304%
MSFT - 191%
ROST - 120%
THO - 266%
WSO - 131%
My Blog: DGIfortheDIY.com
Seeking Alpha Author Page 
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#6
A few questions to make you think.

Do you actually need the money for something or would you just be reinvesting it? If you need it for something then it's an easy call, sell and buy what you need. If you don't plan on buying any actual things with the money, then most likely you would reinvest it, right? So are you currently finding companies where you judge there to be a better risk/return ratio? Because selling it and keeping it as cash is rarely a profitable move in the long run.

If reinvesting is the goal, then you need to look at the future and forget about the past performance. These companies, at least the ones I'm following, have doubled because they have grown their business and have become more profitable... so simply because they are +100% doesn't necessarily mean that they are overvalued. In the end you're always looking for the right risk & return for YOU. If you judge that these companies have good fundamentals and they still fit well into your investment style, then why sell?
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#7
All good points.

This was all prompted from a possible rebalancing exercise.

But in a nutshell, if something is working don't mess with it.
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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