Don’t Sell Purely on Your Valuation Analysis Exiting a Position after Surprises

The IBD Test

We have for selling what we call the “IBD test.” When our companies start showing up on Investor’s Business Daily’s hot top 10 lists, that’s generally the time for us to get out. When the momentum investor’s bible brands one of our companies as a hot growth company, we’re usually ready to sell. Sometimes it’s early, but we’ve got ten in early as well.