This is stupid! How could I have sold the best performer in my portfolio, when I knew it's a healthy business, growing well, and I had bought it so cheap. Yes, I started buying EMAMILTD at Rs 327 in early January 2012, and I had accumulated ~5% of my portfolio in this stock for an average price less than Rs 400, by April.
However, then I did a stupid mistake. Can't remember which one, but I sold off EMAMI at ~Rs 500 because I thought I had better opportunities and EMAMI would not rise further.
In retrospect, I realize the hard way, that sell decision should be taken extremely carefully. Unless you have reasons, very strong reasons, you should not sell. And I sold possibly the best stock to re-allocate. i should have sold the worst stock in my portfolio.
However, still happy to have committed this mistake and learnt the hard way. Now, I'll formalize a mechanism to take sell decisions, and also create a checklist that I must fill up before selling, and only if checklist says so.
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