Trading Eight quick lessons on the intricacies of selling shares

Eight quick lessons on the intricacies of selling shares

DYOR

probably should have tagged this education

but have the feeling some might explore this a little further

 

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A surprising fact about institutional investors
It may surprise you to know institutional investors do not have an edge when it comes to selling. Recent researchers studied the outcomes of selling decisions and determined there was substantial underperformance over the long-term. So bad were the selling decisions they even failed to beat a random selling strategy. These weren’t retail investors. The study reviewed professional investors averaging US$600 million in funds under management.

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didn't surprise me so much , many of the 'institutional investors' face time pressures ( and performance pressures )

i guess this was comparing goats and llamas

i am not defending these big fish , just trying to understand how they think and invest ( a few of these guys could be running a LIC i hold )

 

Quote..
Easy come, easy go
Poor selling is correlated to a lack of conviction. If you don’t have strong conviction buying into a stock, it will show in your sell decisions. This conviction when entering a stock also translates to better selling performance on exit. Think about those stocks representing the smallest proportion of your portfolio. These are the stocks you are most likely to make bad sell decisions with.

Dipping toes in waters is not the optimal way to invest. Concentration leads to outperformance as it encourages deeper analysis. Nothing like a big investment to ward off capriciousness. The benefit isn’t only on the buy side.
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Early in the pandemic this would have been a good quote to read several times..imho..