- Mistake in the investment thesis. Important to have the humility to accept mistakes and control your ego to be able to correct them.
- Company no longer meets most of 15 points above as over time industry and corporate conditions change. Many reasons could be explained by deterioration in management or growth prospect (see the next point).
- Growth prospects for the business are not better than for the overall industry, the company has exhausted its exceptional growth potential.
Fisher warns against selling stocks in companies that still possess all the original qualities just because an investor expects a general market correction.
He also argues against selling just because this company appears somewhat overvalued as this is 'trying to measure something with a greater degree of preciseness than is possible'. Finally, Fisher calls the ridiculous reason to sell a stock just because 'it had a great run'.