Sell Your Company the Warren Buffett Way
Stocks are the most well-liked sort of securities investment there is, specifically for “Main Street types” who may never understand esoteric instruments such as junk bonds and derivatives but who can be educated in good old-fashioned business principles to be able to increase the odds of their favor.
Understanding what to buy and when is an important skill.
One way to figure out a good bargain is to look at a business as a company you own yourself – for without a doubt, that is the very definition of a stock owner!
And looking at a business this way, it should be a relatively simple matter, then, to choose whether business is good.
Conversely, the same perspective is handy for knowing when to unload your share of stock.
After all, as a stock owner, the company belongs to you to the percentage in which you have shares; Discovering when to sell your company, in a sense, would be the same, then, as knowing when to sell those stocks!
Consider it: why do anyone sell stocks?
Since they imagine that the value of the stock will go down – and not just a little, but substantially; actually, sellers are betting that the cost will never recover!
Why might anyone ever sell the golden goose, a goose that lays golden eggs?
If they basically need the money, they could have easily borrowed against the value of the stock – if those are good stocks, needless to say.
(And if they aren’t – well, that’s why they’re selling!)
So should it ever become necessary to un-load your stocks, perform a final check first: can you really sell your company now, for the price offered?
Think of things that way, as if you owned the business yourself.
Unless you’re basically speculating (which is different from investing proper), don’t sell the stock if you would not sell your company!