The best investors are not right all the time. They are constantly synthesizing new information and analyzing their investments for weakness. I was very fortunate to find an excellent friend and mentor, Saul, who taught me when to sell a stock. According to Saul, the right time to sell is as soon as the narrative changes.
And every stock’s narrative changes sooner or later. Even some of the greatest stocks of all time, such as Amazon, become not worth holding anymore. I sold Amazon in March of 2020, which most people would consider as a pretty good time to buy Amazon! After all, it hit a low of $1785/share and is now trading at $3375/share. The thing is, I took that money and bought more Crowdstrike, Zoom, Livongo, and a couple other hyper growth stocks. And how did they do? Way better than Amazon.
Anyway, the example stock from the title of this article is one that I sold earlier today, none other than Fiverr. So, what was Fiverr’s narrative?Read More »