Announcer: 00:00 You’re
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investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode
industry jargon, silence crippling confusion and help you overcome emotions by
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Dave: 00:37 All
right folks, welcome to Investing for Beginners podcast, this is episode 137.
Tonight Andrew and I are going to go back to the mailbox, and we’re going to
answer a listener question. We’ve got a great one the other day and Andrew and
I thought we would take a few moments while who were kidding. We could, it
could be a little longer than a few minutes and we’re going to go ahead and
answer the question on air for the person. So I’m going to go ahead and read
the question and then I’ll have my friend Andrew take a first stab at answering
it. So we’re going to go with:
Dave: 01:06 hi
Andrew. I have a question for you. If I invest in a company for its dividends
and the stock makes a run, and I feel that has reached or surpass what I have
figured out what its intrinsic value is, what do I do now? What if the stock
starts to decline? Do you sell and wait for a new bite point or do you hold on
even if it declines 10 20 or 30% because you like this company? Does it seem
like a dual-edged sword? You like it so you want to hold onto it but you don’t
want to give up all that equity that you’ve made because of the dividends you
could be getting. I need help working through my emotions in this regard, Tom.
All right. Andrew, what are your thoughts on Tom’s question?
Andrew: 01:44 I
like the question a lot. I think it’s a good timing just based on where I’m at
right now in my investing stages,