How to Avoid Selling Too Soon Management’s Role in Buying and Selling

Taking Advantage of People’s Willingness to Overpay

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We used to have a fairly rigid rule that as soon as something went above the market multiple we'd sell, but we thought we too often were leaving money on the table so we now use trailing stops. That means if something hits the market multiple on the day it's trading at $61, we'll set a stop to sell, say, at $59. If the stock goes up to $63, we'll set the trailing stop at $61, and so on. Hopefully this allows us to better take advantage of people's willingness to over pay for our shares.
Source: http://www.valueinvestorinsight.com/