When to Buy, When to Sell? A Surprising Paradox in Long-Term Investing + A Rule of Thumb
Deciding when to buy or sell a stock is one of the most frequently asked—and difficult—questions in investing.
Beyond important considerations such as asset allocation, security selection, position sizing, and diversification, the timing of your transactions will significantly influence your portfolio performance.
Yet, counterintuitively, sometimes you might hold onto a stock at a given price even if you wouldn’t necessarily buy it at that same price today.
Wait …
Huh?
That seems strange at first, doesn't it?
Below, I’ll explore why this scenario often makes sense for long-term investors—particularly those invested in high-quality businesses that reliably compound in intrinsic value over time.