I noticed in January that my former employer stock was on a bit of a run. I decided to set a sell all limit order at a price of $199 per share. Why $199 and not $200? Because I thought a number of other shareholders would try to get out at $200 and I would cut in line. We are only talking 50 shares here..
Part of me thought it would never hit $199 and I would continue to take the quarterly dividend cash flow. I even contemplated raising the limit order a few times not to make more money necessarily but because holding the stock provided some sentimental value. I fought the urge to raise or cancel the limit order.
Lightning struck on March 12 and my shares were sold. The stock hit a 52 week intraday high of $199.18. The shares settled a few days later and I transferred the cash to our joint money market fund. The last time the stock broke $200+ was April 2013.
We now own zero shares of individual company stock. We are only index fund investors. When you buy individual company stock you have to rack your brain for the right time to buy but you also have to rack your brain for the right time to sell. That’s double the market timing anxiety. See 1. The Market is self cleansing. Companies come and go but I can simply track the S&P500 and VTI and tune out the market noise other than for entertainment purposes. Restricted from growth no more.
