By studying the writings, interviews, and investment styles of great investors, Morningstar has gleaned some insights that can help investors solve this dilemma. As it turns out, there are really only four good reasons to sell a stock:
1. You realize you made a mistake buying it in the first place.
2. The stock is wildly overvalued.
3. The fundamentals of the company are deteriorating.
4. You need the money for a specific purpose, such as a new house or to cover living expenses after a job loss.
Reasons Not to Sell >>