Future earnings changes VS current earnings.

jillybeansisme answered 3 months ago …

It is my opinion (I'm not a pro, I just invest for myself) that when you enter into an investment you need to have an exit plan. My exit plan is:

sell if it goes down 20% from its highest point since I invested in it;
and sell half or just more than half if it doubles;
and sell half again if it triples from the original buy in price, etc.

Sometimes I get screwed. For example, when AMED did its drastic drop recently I did sell and it is somewhat recovering. However, when POT dropped from $243/share, I did sell at $200 and it has since dropped to $176. Haven't decided if I will rebuy it or not 'cuz I do like it!

Real estate is a different matter. I'm living in my house and did not buy specultive flips; therefore, I won't sell just because the market has declined severely. It's like a pendulum, it will settle in the middle (sure, I wish I sold at the top -- oh, wait! That's what I did with my last house!) and then I will sell this house. The market will turn back, but probably at a modest rate rather than the ridiculous jump it originally took a few years ago. Anyone who wishes to sell should wait until the market in their area demonstrates a more even seller/buyer situation since right now it is a definite buyers' market. I did buy a piece of property recently at bargin basement prices in the place I plan to move to eventually . . .