Posted on Wednesday, June 4, 2014

The philosophy of Investor Advisory Service is that holding carefully selected stocks over the long term produces the best results. But no stock follows a specific timetable, and there are always ups and downs. Occasionally IAS editors may recommend selling a stock it previously recommended, because sometimes fundamental assumptions made at the time of a stock recommendation can deteriorate, and a revised view is needed.

A word of wisdom from the IAS methodology: Don’t be afraid to sell a stock when the need arises, even though it seems counter-intuitive to the concept of holding onto stocks over the long haul. Because IAS does not advocate a particular “trading strategy,” there is no established formula for when to hold and when to sell a stock. Replacing stocks occasionally is part of the normal process of maintaining a healthy stock portfolio. The art of successful investing is keeping an eye on the big picture and taking appropriate action when needed.