should I sell Boralex and take some profits made before the stock went down dramatically?

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Asked on October 12, 2021 1:23 am
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Fair enough, but I find it difficult to frame a question that doesn't result in this type of answer, as you say you give it frequently, and I haven't learned anything about Boralex yet.
I might need advice on how to ask questions without the reply getting into my thesis, I want your thesis. I'll try in a new question.

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Posted by David Mogensen
Answered on October 18, 2021 8:12 pm
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Could this kind of answer on the individual's portfolio be put in a box somewhere and referred to, as you say you often give this same answer and I've seen this answer given to many questions here.
Whatever insight you have on the stocks latest fundamentals or technicals would more useful than repeating portfolio management advice. Unless that was the question but often the question is more about the stock. The sentence on Capex was the only one that provided information on the possible investment thesis, is that all there is to know?

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Posted by David Mogensen
Answered on October 12, 2021 3:09 pm
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Hey there,
We get these types of questions a lot - should I sell xxx? This is a very personal question and that decision can only be made within the context of one's portfolio. However, we can certainly help you with some tips and tricks on how to come to that decision. For example, I always circle back to why I bought the stock in the first place. That is a critical first step.

For example, did you buy BLX because you felt it was undervalued? Paid a dividend? Gave you exposure to the renewable industry? There are thousands of reasons why one would have bought a stock. The next question I ask myself is has the investment thesis changed? If no, then I'm likely not to sell since I buy positions for the long-term. If yes and its for the better, well once again I am unlikely to sell. If the answer is yes and its for the worse, at that point I'd like consider exiting my position. Once again however, there are times where I may not exit and it'll be dependent on the context and my overall portfolio.

The other thing you may want to ask yourself - do you see a better opportunity? For example, perhaps an investor has identified a better option in the renewable industry. One that has a better investment thesis and that better fits one's risk tolerance and portfolio. Then, there could also be a case for selling a position to take advantage of that other opportunity.

If price action is the only thing that's changed then I'd likely not do anything. Stocks never go up in a straight line and in certain cases are prone to significant volatility. So long as my investment thesis hasn't changed, then I'll hold through the ups and downs. Of note, in the case of BLX's most recent downtrend keep this in mind - all renewables and most utilities have been struggling recently. The threat of rising rates will impact high-capex industries and will be a headwind for these companies.

Mat

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Posted by Mathieu Litalien
Answered on October 12, 2021 5:55 am