In recent weeks we’ve talked about how to find great investments in several articles.

• One Gigantic Sign You’ve Found A Fat Pitch Investment
• The Number one Rule For ANY Investment

This is important…  But what happens after you find a great-looking investment… But things go wrong?

When should you sell something you’ve bought?

Almost everyone you ever learn from in the world of investment and finance will focus 100% of their time telling you when you should buy something.

But these people are missing out on a huge part of the equation when investing real world money…

When should you sell?

To answer that I’m going to show you an excerpt from our free guide 7 Tips To Picking Great Stocks and The 3 Times You MUST Sell.

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I NEVER thought about this question myself until I was forced to.

Years ago, I found, researched, and saw a special situation opportunity coming.

I estimated the potential upside while weighing the downside risks and figured that there was a far greater than 50% chance of a safe 30% return in 3 months.

But I was fully invested at the time and didn’t know what to sell.

So I sat on my hands and did nothing.

Well it turns out I was wrong about that opportunity… In a bad way for me and my investors.

It turned out that the opportunity I took an enormous amount of time and hard work figuring out did happen.  So I was right about this.

But instead of it going up 30% in 3 months, it went up more than 60% in less than 3 months.  I was massively wrong about this.

And I missed it because I didn’t know what or when to sell.

While that short term pain of missing out on that opportunity still hurts years later, it forced me to build specific criteria for when I sell.

And these have helped me immensely in the years since.

I’m sharing them here with you so you can avoid the pain of missing out on a great opportunity when you see it coming.  While also limiting your mistakes further when they do come up.

• If I realize I made a mistake after I buy

If I come across some new piece of major negative information for example that I missed or that was released after I finished my initial analysis, I sell.

• If management starts doing dumb stuff

If they start using shareholder money for their spouses to use private jets, pay for security for a billionaire owner of the company, etc.

In other words, if I feel managers aren’t doing what’s in the best interest of all shareholders, I sell.

Oh, and the examples of the private jets and security for billionaires – those are real world examples I’ve read in financial statements before.

• If I find something better

If I find what I feel after the analysis to be a better opportunity for the long term for my investors, I sell.

Some examples of this are…

• The asset is more undervalued
• I expect a better long-term return on my investment with another investment
• The company is less risky than others
• Some combination of these factors
• Etc.…

• Bonus – If the stock price rises a lot in a short time period on no news

This has only happened once to me so it is rarer than the other situations.

But If I buy something and it goes up a lot with no new publicly released news, and it goes far above my intrinsic value estimate, I sell.

Why?

Because the margin of safety is gone if the price goes up that much in that short of a time frame.

And, because if the share price rises a lot, there should be some related public news, not potential back room shenanigans by company executives and insiders.

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These are the 4 Times You MUST Sell an investment after you’ve bought it.

To get the rest of this free guide to see the positive criteria to look for in an investment click here.

You might be thinking… This is it?

Yes it really is.

Because the investments I typically buy are Warren Buffett style compounders – buy and hold forever stocks – these are the only times I sell a stock.

If it doesn’t meet these criteria… I don’t sell.  Unless its some kind of special situation or NCAV stock.

This may seem simple, but these 4 things have helped save and make me more money than just about anything as an investor.

And I know they’ll also help you.

Always in your service,

Jason

P.S. To learn more about how to become a great investor faster check out our Value Investing Masterclass by clicking here.

P.P.S. Right now we’re offering $9,000+ in FREE bonuses to the first 10 people who sign up to the newly relaunched Masterclass.  To learn more about the Masterclass and these free bonuses click here before they’re gone.

P.P.P.S. Now we have 3 people in the Masterclass.  So there are only 7 spots left to get these free bonuses that will show you every step needed – including the exact links I find great investments.

P.P.P.P.S. Plus, this all comes with a 14 day free trial as well.  You input your credit card info when joining… But you don’t pay me a dime until day 15 and you love the program.