When to sell a winner

"Ride your winners and cut your losses:", they say. But does it work? In my wire earlier this week, I talked about not selling RNY Property Trust after it had tripled, only to see if fall all the way back to the starting price. It is clearly not a fool-proof strategy. None of the many investing platitudes out there are. It is important, though, to maximise returns from the investments you get right. We've had a large investment in Service Stream which has more than tripled in the past year. We've sold a third of our holding but still have a very sizable investment. The key, for me, is not to anchor yourself to a prior share price. It's irrelevant where the share price was a year ago, what matters is what it is worth today relative to its current price and, as I explain in this video, I still think there's a case for value in the stock.