SKYSHIP wrote:tjh - Q. Do you ever trade? Do you ever sell anything as with KIE, NRR & RMG in your portfolio, all crashing for their own specific reasons, you must have some good winners to counteract such losses and return 90%+ in 7yrs.
I've previously given my criteria for selling.
1. If the yield falls below about half the market yield and stays there, I might sell out completely. Note that I still hold SGRO, CPG and DGE, all below that level. Recent examples INDV and RSA.
2. If the company stops paying dividends with little prospect of a resumption in the foreseeable future, I will sell completely. Examples from the Financial Crisis are DSGI, Trinity Mirror, Premier Foods, Rentokil, ITV and Yule Catto.
3. If the holding value exceeds a certain percentage of my portfolio value (currently 150% of the median holding, but has been 200% of the median. Before that it was 10% of the portfolio value) then I usually sell about 25% of the holding and redistribute it according to my criteria for topping up. Look for topics started by me on "Tinkering time" or similar.
4. If a company is going private, I get out as soon as convenient. Examples are Brit Insurance and Mapeley.
5. If a company is demerging a foreign company, without a UKM quotation for that company, I will sell. Cadbury Schweppes was an example, when Dr Pepper was split off.
Carillion unfortunately caught me out. I expected a rebound which never came. Likewise Cattles.