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When is the “right time” for you to liquidate your funds?

What factors would make you liquidate your funds from be it robo advisors or stocks etc....?


    Discussion (12)

    What are your thoughts?

    1) when there is an better opportunity, but you dont not have enough cash.

    2) the economic characteristics of the buisness had changed, the buisness become irrelevant

    3) When a single position in your portfolio get too big, applicable for stock picker only.






      14d ago

      Level 14·Owner and Writer at Tortoisemoney.com

      To liquidate large portions of my portfolio, I guess I'll only do it as I'm closing in to retirement to move into less risky assets, potentially? Or possibly just liquidate for expenditure. Same with robos I guess for those who use.

      As for individual stocks, the thought process is a bit different. I will liquidate if:

      1. Investment thesis changed: E.g., they failed to achieve their plans and say, sales are much lower than expected or they suddenly started putting money into an expansion that you feel will not work out well. If you're doing a trade, a failed investment thesis might be like a failed breakout where you should just cut your loss.
      2. You have a better opportunity on hand: Another stock that you think might do better. I would say, when a company's valuation runs up too far (as compared to its peers and what you might expect from it), it might fall in this category as the risk to reward becomes less and less attractive. Be careful with this though, it's easy to end up selling winners for sub-par companies in this manner.
      3. Cashing out: At some point, you might want to cash out your investments, whether it's to move to less volatile companies, to shift to dividend stocks or just to take it out to spend.




        When you need the money. if not, if you believe the business is still doing well or growing, why let...

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