” Don’t push harder: Remove the barrier.”
Excellent article last week in Lifetime Income Report (7/23/15, AgoraFinancial.com) on how to evaluate when to get out of an investment that’s making money. Many investors hang on to long and end up giving back some or all of their gains.
You’ve made an investment. It’s shot up quickly. Oh crap, is it getting overpriced and ready for a downward adjustment? Or has the rally got more legs to run?
KEY: How much is the investment worth now? How much are you getting paid to hold it?
Warning signs: Are analysts getting pessimistic about future earning (real analysts, not talking heads on TV.) Is investment getting pricey historically? Dividends just average?
When you meet your “exit price.” What’s an “exit price”? The day smart investors buy an investment, they set the price at which they plan on selling. The “exit price” that meet their objectives. Smart investors have a plan when they “buy” on how they expect the investment to perform. They stick to that plan.
The rest of investors? Everyone buys with the expectation the price will rise. Majority of investors fail to evaluate their investments using the keys above. Nor are they watching Warning signs. Therefore they don’t know when to sell.
Lifetime Income Report pointed out that investments are nothing more than a piece of paper we trade. Don’t become attached to specific company or position. As soon as you do you will likely make mistakes and lose money. (If your gain has dropped from 50% to 25% you’ve still lost 25%.)
Never lose your objectivity. If investment has one or more of the warning signs above, set your exit price.
C H Spurgeon
What are head hunters hearing from candidates?
There is no sense applying to jobs at (fill in name of employer) because they:
There are two types of management candidates. Job seekers and career seekers. Most employers want candidates who are looking for long time career with same company. Most of those same employers end up attracting job seekers. Why? Process most employers use with candidates is unprofessional.
Employers are hurting the reputation of their companies. Candidates talk among themselves and share their experiences about different companies they have applied to. Many candidates identify specific companies they would never work for. Invariably because they had bad experience with that prospective employer. Do you really need career seekers bad mouthing your company?
Is Your Company Doing Any of the Following? (We sure hope not.)
How Do You Know What Candidates Are Saying About You?
The demand for qualified candidates is getting really intense. Salary demands are increasing a lot from best candidates. Are you ready to compete?