The Tesla Dilemma: To Sell or Not to Sell? : TSLA

"Our favorite holding period is forever," Warren Buffett has famously said. But even the Oracle of Omaha sells stocks at times. He has even expressed regret in not selling his beloved Coca-Cola stock when it became wildly overvalued in the late '90s. In reference to its wild run-up, Buffett confessed his mistake in the 2004 Berkshire Hathaway letter to shareholders:

Berkshire's results would have been far better if I had caught this swing of the pendulum ... I can properly be criticized for merely clucking about nose-bleed valuations during the Bubble rather than acting on my views. Though I said at the time that certain of the stocks we held were priced ahead of themselves, I underestimated just how severe the overvaluation was. I talked when I should have walked.

So what is the best practice? Should you let your winners run? Or should you cash out when your stocks become overvalued? (more)

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