sell some of my stocks?

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Lemonaid56
Posts: 263
Joined: Thu Mar 03, 2016 1:15 pm
Location: Maine

sell some of my stocks?

Post by Lemonaid56 »

So before I joined this Forum I had been following the Motley Fool philosophy. Owning individual stocks but owning them long term.
I bought stocks based on the theory that if you like a product, use it and see that other s are using the same product it should be a good stock to hold as well. But you hold them long term. Not a alot of trading once they are purchased.
Since I have joined the Boglehead philosophy I let my subscription lapse and lack guidance for the stocks we bought to hold for 10-5 years. Out of all the stocks I've purchased one, ATVI, Activision has performed over 300% since purchased. We only hold 50 shares.
I wonder at what point I should sell off some or all of this stock? Offset it with one of the losers? I've only owned it and the others for about 5 years so not reaching the 10 year goal, should I consider selling or get rid of some? Or since I had prescribed to that theory of buy and hold wait out the 10-15 years?
What do you all think?
whanaumark
Posts: 49
Joined: Tue Mar 14, 2017 1:15 pm

Re: sell some of my stocks?

Post by whanaumark »

I too have moved from individual stocks into a bogle head portfolio. No one can predict the future and tell you the "best" time to do this. Who knows, maybe the next Call of Duty will be even more terrible and Activision will go bankrupt ?

If the stocks are in a nontaxable account, just pull the trigger and sleep soundly knowing you have reduced single stock exposure risk in your portfolio.

If they are in a taxable account:
1. Immediately sell any losers
2. Use the capital losses to offset any gains from selling
3. If you run out of capital losses to offset then you will have to pay taxes on the sale. At some point, you would have had to do this anyway, so just bite the bullet. Don't let irrational tax aversion cloud your thinking. You have committed to a new IPS then there is nothing to be gained from waiting. Not doing so is really just a form of stock picking.
The only exception to this would be if you are expecting reduced income in the near term that would put you in a lower tax bracket next year.
jebmke
Posts: 25273
Joined: Thu Apr 05, 2007 2:44 pm
Location: Delmarva Peninsula

Re: sell some of my stocks?

Post by jebmke »

Over the years we have been donating to charity legacy individual stocks with unrealized long term gains. We do it via our Donor Advised Fund but it can be done directly to charities. This avoids taking a gain, gets rid of the stock, gives us a tax deduction for the donation and helps one or more worthy causes that we feel strongly about.
Stay hydrated; don't sweat the small stuff
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