Deciding when to part with a winning stock is a tough call, especially when its value has surged dramatically. The instinct to secure gains or reduce exposure can be strong, but cashing out too early risks missing out on significant future growth.
Selling a high-performing stock may seem like a safe move, but it often means forfeiting the potential for even greater returns. New investments may not match the momentum of the original winner, and selling triggers tax liabilities that chip away at profits. As legendary investor Warren Buffett suggests, holding onto winners for the long haul is often the smartest strategy.
By choosing stocks with strong fundamentals and staying committed, investors can avoid the pitfalls of market timing. The following two stocks have more than tripled off their 52-week lows, but still have plenty of room to run.
This post originally appeared at 24/7 Wall St.