Sometimes a good reason to sell shares has more to do with your portfolio than the company.
If your investment allocations are out of whack, you may need to rebalance by selling your winners and buying your losers to get back on track.
Or you may find a better investment.
When Fidelity’s Yoon discovers a new idea – “company B,” he says – with a better potential reward for the risk than a current holding – “company A” – he’ll sell some shares in A to buy B. “Keep in mind the overall goal: To capture the best ideas in a risk-adjusted way that can deliver the best compound returns,” he says.