. Rolls-Royce Holdings (LSE: r.) The price of the action simply reached another highest level in history. The shares increased by 95% during the year and 600% in five years. And when we try to decide if and when to sell, we can deal with arguing ideas.

Keep the winners and sell losers, that’s what some people encourage. But does this mean that we will be drawn into every bubble? So he can hang and sell at the top? Well, no one ever tells us when the peak is here, right?

And if we always sell Fallers, it can also be a substantial mistake. Is it not the investor of the billionaire Warren Buffett, who suggested that we should let prices fall if we intend to become a net buyer?

Take profits?

Profit is never a mistake, it goes the opposite suggestion. Was it not tempted to sell Rolls-Royce a year ago and 300%chunky packaging? Those who have not seen their shares since then.

Sales reasons

Knowledge about sales is probably the most hard part of investing on the stock exchange. The key driver is for me when I think something has changed and the company can end. I mean what the company does, not the price of shares.

In May’s AGM, Tufan Eggilgic about “Trust in our tips for 2025 2.7 billion GBP-2.9 billion GBP of operating profit and 2.7 billion GBP-2.9 billion GBP free cash flow.“He pointed to tariff uncertainty as something that should be cautious. But Rolls will not boil, as I see.

Diversification can be a good reason to consider sales. If the supply later falls, we may suffer less pain if it is a tiny percentage of our investments. Investors who bought Rolls five years ago in what was diverse portfolio could now look at the unbalanced spread.

Some will be joyful with it. But I prefer to devote some growth possibilities to balance the risk. So I cut my resources of all stocks that begin to dominate.

Another reason is that sales of shares can be an attractive option if you need some cash. The best scenario I can come up with is the approach to retirement with ISA or SIPP (or both) that relieves a opulent impact on investment life – and the desire to switch to collect income.

Quotation

What if we see a better investment opportunity for cash? This can be a good time to consider selling something that we are already holding. And leads me to my two key savings: strategy and valuation.

At Rolls, we look at the forecast price for profit (P/E) of 37 to 27 to 2027. This is not necessarily too high for actions with sturdy growth prospects, especially in the case of growing net cash on books. People who implement a development strategy may even consider buying now.

Are you looking for income from high -performance dividends? Investors with this strategy are unlikely to lend a hand Rolls-Royce.

The most hard decision is investors of values ​​who saw an unjustified low price in 2020, who now have to decide when enough.