Selling a stock can be as critical as buying one. While strategies differ among investment giants, each offers valuable insights into when it might be time to let go of a stock. Let’s explore the key principles from some of the most respected minds in investing. #### **William O’Neil: Follow the Technicals** For O’Neil, stock movement relative to technical indicators like the 200-day moving average is crucial. He recommends selling if a stock is 100% or more above this average—a sign it may be overextended. Similarly, if trading volume is high but the price stagnates, it suggests waning momentum. These are signs of potential reversals. #### **Peter Lynch: Keep an Eye on Valuation and Sentiment** Lynch advocates selling when the price-to-earnings (P/E) ratio outpaces the company’s projected growth, signaling overvaluation. High analyst recommendations or excessive institutional ownership can also suggest the stock is overbought. A PEG ratio exceeding 2x is another red flag. Finally, if the stock gets glowing media attention, it might be time to cash out. #### **Warren Buffett: Look for Fundamental Deterioration** Buffett focuses on the business’s competitive advantage. If this moat begins to erode, it’s time to reconsider holding the stock. Similarly, excessive valuations or the emergence of better opportunities elsewhere justify selling, especially if the capital can be more effectively allocated. #### **George Soros: Cut Losses and Lock in Gains** As a trader, Soros emphasizes discipline. He recommends selling if losses reach 7-8% below the purchase price or when profits hit 20-25%. This stop-loss and profit-taking strategy minimizes risk and secures gains. #### **Benjamin Graham: Stick to Intrinsic Value** For Graham, the sell decision comes down to intrinsic value. If a stock is no longer cheap by fundamental analysis or becomes overpriced, it’s time to sell. Timing is less about market conditions and more about the disconnect between price and value. ### So What? Selling decisions vary by style—technical, fundamental, or sentiment-driven. The key is to align your approach with your investment goals. Traders might favor Soros’s precise thresholds, while long-term investors could lean on Buffett’s focus on competitive moats. Whatever your style, having clear sell criteria is essential for disciplined investing. [[Sell and Buy Signals]]