Sell too early
A friend asked me which stocks I’ve sold too early. Given that public markets are now on a tear, I wasn’t short of answers.
I told him that I bought $TSLA at ~$300 and sold at ~$900 (USD), over a four month period, so naturally thought I was genius.
The stock is now trading over $2,200, and is about to split.
I sold way too early, against my general thesis to bet on entrepreneurs I like and stick with them.
That said, the conversation reminded me of a J.P. Morgan quote: “I made my money by selling too soon and never buying at the bottom.” Other investment greats from Baron von Rothschild to Bernard Baruch have reportedly made similar comments.
The point, I think, is to not think you’re so clever as to be able to time the market. It’s much better to sell a month early than a day late.