Investors can sell to take profits

Remember. Investors can sell to take profits causing a company’s share price to fall, this does’t mean the company is a poor investment, the company can actually remain an excellent investment in the long term.

Share prices can fall if hundreds of investors decide to sell large volumes at the same time to take profits, the underlying performance of the company might not have changed.

This is why we follow the company’s performance not the share price in the long term.