Should I take profit on my DBS stock or hold for the long-term?

Hi there,

It really depends on what the fundamental reason was for you to buy DBS stock.

I think it is important to note** that majority of investors DO NOT understand that banks are very cyclical companies. Many investors think that these big banks are defensive stocks. However, if you study and way the business runs and how they generate revenue, you will understand banks are very cyclical. Thus, it is essential to expect poor results during economical downtimes.**

Knowing that, investing with the expectation that it might take a longer time to recover as compared to another company, might remind us that these were expected and we have to hold it out.

If the reason you invested was dividends and you feel the dividend cut makes the stock very unattractive then may be selling and buying into another better product could be one option.

Of course these are just 2 examples, ultimately, it's what the reason you bought them for in the first place and do you still see value holding on?

1 question to ask yourself, knowing what I know today, will I buy more? If the answer is no, then we must be non-emotional, take any loss/ reduced profits and move to something that we really believe in for better opprotunity cost.

Hi Anon, I would say depends on your comfort level.

The current period is consider very volatile with the S&P 500 or STI index going red and green without any signs.

If you are comfortable with the votality and do not require the money for the time being, I would continue holding it because I believe that DBS is still an overall strong company in SG market.

If you feel uncomfortable with the current votality and need the amount now, then take profit.

Also, keep in mind the growth percentage you are looking for. Maybe it's 75% growth since your purchase or maybe its 150%. Once it reaches that growth, take it out, don't be greedy with profits.

Lastly, if you wish to do this, you can also do a 50-50 withdrawal. Take out the amount which you originally invested + 50% of the profits gained over the years. Leave the remaining on hold and let the market decide the direction.

Hope this calm your mind and provide you with a voice to your doubts.