The most important question is when to sell. The problem is there is not an exact answer or formula for selling; investing is an art and a science. Sticking to a strict portfolio selling rule will only cut our winners short and require us to recycle that capital into opportunities that may not be as good a risk or reward.

This is not to say that we should own cyclical businesses through an entire cycle. The key is to remember why you bought the stock to begin with. Every situation is different and requires constant re-evaluation of the facts at hand. The human mind struggles with the ability to change our mind, because we are taught to stick to our guns and stand up for what we believe in. That type of mindset in investing can lead to poor outcomes as the facts change and you are unable to change your opinion due to your own stubbornness. — Sean Kirkwood, SRK Capital..

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