Jason Hall

The point is, if you sold out of either of those companies along the way because of competition concerns, valuation concerns, macro concerns, and there were plenty of opportunities along the way to do it, you would have missed out on their strong growth.

Which, by the way, Jeff, you mentioned this before, it's not over for either of these companies.

Emily, I want to start by saying I love that you used the word framework there.

I described earlier how our human nature sets us up to fail as investors, and a good framework beats rules all day.

Rules are stupid things like selling half of a stock that doubles and thinking of things as house money.

A framework helps us build a process that would assist us in making better decisions.

More importantly, it makes us harder to take actions that are not in our own best interest.

So my checklist for selling includes a few things.

The first, if I'm selling because I've reached a financial milestone and it's time for me to sell stock, maybe I need to shift some of that stock wealth I've accumulated to bonds or to cash because I'm closing in on a financial goal.

Maybe I'm in retirement or it's part of my income strategy.

Number one, that's great.

Guess what?

You're selling because you've reached financial goals.

That's optimal.

Now, if it's not for one of those reasons, you have to start asking myself why.

some questions.

I start with asking, am I selling for business reasons, macro reasons, or valuation reasons?

If the business is no longer meeting my thesis expectations, what has changed?

What's changed in the business?

Then I start asking myself, well, has that changed because of the business, for competition, or a macro reason?