Know When to Sell a Stock

Don't let a stock's stumbles blind you to its long-term potential.

(Image credit: DenisIsmagilov)

"I love Facebook,” Will Danoff, Fidelity Contrafund’s excellent manager, said at a recent investing conference. “Don’t sell after the first double.” The advice resonated with me, and not just because I, too, own Facebook (symbol FB). I thought it helped explain why Danoff, a value-conscious growth investor, has been so successful. Like Warren Buffett, he has a strong bias toward holding a stock even when it encounters turbulence. “I don’t want to get shaken out of a stock if I like the long-term story,” Danoff once said.

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Andrew Feinberg
Contributing Columnist, Kiplinger's Personal Finance
Feinberg manages a New York City-based hedge fund called CJA Partners.