When to Invest and Sell

Amar Pandit , CFA , CFP

Let’s try to answer this question together.

When should we Eat?

Answer: When we are hungry.

When should we Rest?

Answer: When we are tired.

Likewise, when should we Invest?

Answer: When we have the money.

And when should we Sell?

Answer: When we need the money.

It can’t get any simpler than this.

We invest when we have the money. We sell when we need the money.

This is exactly what wise investors do. They keep it simple and let the engine of compounding to do the magic.

The problem is that it’s so simple (not easy) that many might not even believe it.

In fact, they do the exact opposite.

They wait when they have money to invest (Oh, the markets are too high).

They sell when they don’t need the money (Everyone is selling. Run to safety).

What do you think?

I would love to hear from you.