'Don't sell your winners too early even as they reach your estimated target price'

During the last 28 years I have been in the markets, I have seen various market cycles, starting with the Harshad Mehta boom (while I was in management school). Every cycle is a learning experience and teaches something new, shaping one's investment philosophy and style. Some of these lessons are: Don't sell your winners too early even as they reach your estimated target price. Great companies continue to deliver year after year and can surprise you as they gain more efficiencies and scale benefits. Patience is key here and continuous re-evaluation of the new data is important. Devote enough time to get the narrative about the company right while building its investment thesis, rather than focusing only on valuations. The narrative could be the opportunity size, key competitive advantage, etc. This approach is particularly relevant while evaluating high growth and expensive stocks. I have been able to invest in some early-stage g

This article was originally published on August 12, 2020.