I sold two stocks this week, TJX-(100-after split originally purchased 50 shares) and MCD (30 shares). I had purchased them both in May of 2010. They both did wonderful for me, TJX stock just split, and gave me a gain of about 50%, and MCD was always going up until it danced around $100/share, then I decided I just didn’t need to be greedy and sold it for $99.75, and a total gain of around 40%.
I have to admit, I feel that I had a good run with these stocks, but I feel like I am losing two good friends. I no longer obsessively check their prices, when I purchase items from their stores, I no longer feel like I am contributing the well being of my portfolio. I just thought it was time to part ways.
A few years ago, I had a distasteful experience with a bank stock, oh sure she gave me a good increase on paper, but I didn’t know when to say good-bye and just take the gain and walk away. I have learned my lesson. Now I know what gain I’m happy with, usually around 30% is great for me, unless it has a huge dividend then I might keep hanging on. It’s a case by case scenario, but I’m not going to be greedy.
What are your indicators that it’s time to sell?