“Those 'slightly over valued' moves can be costly...depending of course on whatever else you do with your net sales cash.“

Yep, a good example. And as I understand it, Buffett would advocate only selling if the capital was needed for some significantly better investment - that is something you understand as well as the thing your selling and which on sale. Selling a compounder you understand well through years of ownership, just because it got to intrinsic value or something, is not a great reason for selling. Further, it’s worth considering that for most of us our circle of competence is much smaller than Buffett’s and when we sell, we might be moving into something of lower quality and sustainability and that’s a big problem. I am teaching my children, that when they find a great long term opportunity, load up and hold on. If you need more capital for something later work and save hard. Only sell if the valuation gets truly ridiculous, or you have actually truly found something you understand better and are almost certain it’s a way better opportunity. But don’t sell just because it fairly valued, or even a little over valued.

Berkshire Hathaway FAQ

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