If you own stocks, it is a good feeling to sell at a higher price than you bought, after all that is what part of the stock market is for. The question is always did you make the right decision – if it was part of reason to buy something else, than maybe for your new stock should out perform the old one. If you are chasing performance, then in all likelihood your returns are going to be lower. Thane Stenner of Richardson GMP writes many investors chase performance for lower returns and it possible, that if they changed their behaviors the returns would be higher. Mr. Stenner specializes in high net worth investors and writes generally what they do is:

1. Expect to have a 3-5 year period of buy and hold. If you have done research and the product fits into your strategy first; you will have more confidence to buy and hold.
2. Control your speculation. There will be some situations that cry for you to do something either short or long; many you will not know, although you might have an opinion. The special situations do not come up everyday, so control your expectations to those areas where you have a significant advantage. Remember to separate speculations from core holdings and routinely take profits to reduce risks.
3. Exercise selling discipline. When they sell try to use rational reasons: a)  Business reasons – the business has changed and is going through restructuring. b) Valuation reasons – the investment is at full value – it is time to look at alternatives. c) risk management reasons – the individual’s tolerance for risk changes. d) personal reasons – to buy something or to pay for something or use the money outside the market.

Linking to dividend paying stocks, notice how buy and hold and using patience fits into dividend paying stocks. If a company is growing its dividend and expects to continue to do so, it can easily be a hold for many years. If something changes, then one can look at the alternatives. If the stock is growing its dividend, it has to be profitable and that will be reflected in a growing stock price.

There are more questions than answers, till the next time – to raising questions.