Yes! We Do Sell Stock!

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1 Disclaimer Yes! We Do Sell Stock! Scott Horsburgh, CFA Author, The Repair Shop and Investor Advisory Service (IAS) President, Provident Investment Management 2/4/2015 The information in this presentation is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. The securities of companies referenced or featured in the seminar materials are for illustrative purposes only and are not to be considered endorsed or recommended for purchase or sale by BetterInvesting TM National Association of Investors Corporation ( BI ). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvesting TM. Investors should conduct their own review and analysis of any company of interest before making an investment decision. Securities discussed may be held by the instructors in their own personal portfolios or in those of their clients. BI presenters and volunteers are held to a strict code of conduct that precludes benefiting financially from educational presentations or public activities via any BetterInvesting programs, events and/or educational sessions in which they participate. Any violation is strictly prohibited and should be reported to the CEO of BetterInvesting or the Director of Chapter Relations. This presentation may contain images of websites and products or services not endorsed by BetterInvesting. The presenter is not endorsing or promoting the use of these websites, products or services. This session is being recorded for future use. 2 Selling Myths MYTH Once a stock has doubled our investment it is time to sell. MYTH Wait until a stock is back to even before selling. MYTH Sell if the stock price falls 10% (or some other %) below the purchase price. MYTH Only sell when your SSG says Sell. MYTH If a company is meeting our growth expectations, then do not sell. MYTH Don t sell a stock until you have found a good replacement. Valid Reasons to Sell When something is truly wrong with the business and it won t likely be fixed within a year MYTH Sell everything when we are going into a bear market. MYTH Don t sell because it s a good company. 3 4 BetterInvesting 1

2 5 6 Consolidated Balance 12 Months Ended Sheets (USD $) In Millions Feb. 26, 2011 Feb. 27, 2010 Asset Cash and cash equivalents $ 1,791 $ 1,551 Short term investments Accounts receivable, net 3,955 2,594 Other receivables Inventories Other current assets Deferred income tax asset Total Current Assets 7,488 5,813 Long term investments Property, plant and equipment, net 2,504 1,957 Intangible assets, net 1,798 1,326 Goodwill Total Assets 12,875 10, BetterInvesting 2

3 Valid Reasons to Sell When something is truly wrong with the business and it won t likely be fixed within a year When the stock price has risen so much that future gains are unlikely BetterInvesting 3

4 Valid Reasons to Sell When something is truly wrong with the business and it won t likely be fixed within a year When the stock price has risen so much that future gains are unlikely. When you find a better stock. Frequently this is a back door way of exiting a weak holding BetterInvesting 4

5 How can you become a better seller? Write it down have written rules for selling just like you do when buying For an investment club rotate stock assignments so one person isn t identified with her or his stock Remember, stocks are a means to an end. The goal is to grow your wealth. You aren t being disloyal to a stock if you sell it. Time for Questions The StockUp Book Club Meeting Number ONE Jim Cramer s Get Rich Carefully Wednesday, March 4, :30 9:30 PM EST 19 Open House SAMPLE OUR RESOURCES Try it FREE First Before You Start Investing! BetterInvesting 5

6 Questions? Thank You! 21 BetterInvesting 6