19 Cardinal rules on selling stocks

There will be significant fluctuations in the price of individual stocks in one’s portfolio, but this is background noise. Against this noise the investor must monitor their portfolio to detect signs that the superb companies in their portfolio have not or are not deteriorating in character and quality. Where quality has deteriorated, the investor should not hesitate to sell.

Wall Street’s mistaken reliance on price correlation

Our subject is diversification and the blind reliance many investors place on the statistical correlation of prices. Correlation is not a term most people are familiar with. It is the mutual relationship between two or more things. In finance and investing it is most often thought of as price statistical correlation. Like much of statistics this can lead you down the garden path.