Seeking Alpha
0
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

Selling Stocks Is Like Football: Ohio State Coach Woody Hayes On Portfolio Management

"There are three things that can happen when you pass the football and two of them are bad," observed The Ohio State University's legendary coach Woody Hayes. All the Seahawk fans, myself included, know exactly what he is talking about since the Seahawks chose to pass the ball at the one-yard line. You can complete a pass, you can throw it for an incompletion, or you can throw it to the other team (an interception).

The same thing can be said for existing common stocks in your equity portfolio. If you sell them, three things can happen and two of them are bad. First, you can sell the shares of common stock and see them greatly underperform the rest of your equity investments (GOOD). Second, you can sell the shares and see them outperform your portfolio (bad). The third thing that can happen is comprised of the first two; the… Read More …