{"id":413,"date":"2021-02-26T18:39:28","date_gmt":"2021-02-26T18:39:28","guid":{"rendered":"https:\/\/stockezy.com\/?p=413"},"modified":"2021-05-23T07:40:15","modified_gmt":"2021-05-23T07:40:15","slug":"is-it-a-good-idea-to-keep-holding-stocks-forever-as-an-investor","status":"publish","type":"post","link":"https:\/\/stockezy.com\/is-it-a-good-idea-to-keep-holding-stocks-forever-as-an-investor\/","title":{"rendered":"Is it a good idea to keep holding stocks forever as an investor?"},"content":{"rendered":"

Is it a good idea to keep holding stocks forever as an investor or is it good to sell them occasionally and make profits to reinvest?<\/em><\/p>\n

The trick is not to learn to trust your gut feelings, but rather to stand by your stocks as long as the fundamental story of the company hasn’t changed. Always remember\u00a0\u201cWhen you sell in desperation, you always sell cheap<\/strong>.\u201d<\/p>\n

Let\u2019s take an example, the share we are going to discuss will be Escorts Limited. The reason is that nothing is fancy here, the stock has good fundamentals hence the good growth.<\/p>\n

\"Escorts<\/p>\n

The stock price was hovering around 100\u2013200 between 2011\u20132015 but it went up 970 in 2018. That\u2019s a 10-fold return on your investments.\u00a0If you have invested 1 lakh rupees then you would have made a profit of 9 lakh approx.<\/em><\/p>\n

Now, this kind of profit is only possible if you can hold a good stock with great business for 5\u201310 years.<\/strong> And if the fundamentals of the company are still the same then don\u2019t sell. Hold the stock for another 10 years and see the magic. You can always sell 5% of your total holdings to get some cash but never sell more than 10% as you can hold these kinds of stock forever.<\/p>\n

So if you would have sold 10% of your holdings, you would get back your initial investment of 1 lakh which you can utilize to further invest in other great companies.<\/p>\n

And to conclude, I think it\u2019s better to hold the shares of great companies forever, as their value will only appreciate with time, provided the story and fundamentals behind the company doesn\u2019t change.<\/p>\n

Have patience, don\u2019t let the temptation to make a quick profit take over you.<\/em><\/p>\n

Few other examples:<\/p>\n

1. TITAN COMPANY<\/strong><\/h4>\n

\"Titan<\/p>\n

If you will sell the stock of Titan, do you think you can buy it again for 50, 100, 200, 300 rs? Seeing the above chart, I don\u2019t think so.<\/p>\n

2. TCS<\/strong><\/h4>\n

\"TCS<\/p>\n

3. Reliance<\/strong><\/h4>\n

\"Reliance<\/p>\n

Now ask yourself this, can you purchase these stocks at an earlier price point? Even though you can see two major crashes (crash of 2008 and other more recent crashes in March 2020 due to COVID-19) you won\u2019t be able to purchase these stocks at those prices.<\/p>\n

Happening\u2019s Around the Stock Market\u00a0<\/strong>(25-02-2021)<\/strong><\/span><\/h3>\n