When nominating stocks to consider selling in 2020, it’s easy to focus on soaring companies, conclude they are overvalued and recommend profit taking. Only to watch strong-momentum stocks fly higher and be reminded that what counts most is future value, not past prices.
CSL and Cochlear, for example, look pricey and are hard to buy at current prices. But would I sell them if they were in my portfolio? No. Their exceptional quality and prospects warrant demanding valuations and a long-term investment approach.
Over the years, I’ve found the hardest sell ideas are not in soaring tech stocks or cyclical companies exposed to slowing industry conditions. It’s when quality, well-run companies become too expensive and require profit-taking. Stocks you would buy back at the right price.