--- title: "Meaning & Key Takeaway of: Selling, in particular, can be a…" description: "\"Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. This temptation mu..." image: "https://sms4smile.com/quotes/i/d72/seth-klarman-1979_challenges_selling-in-particular-can-be-a-challenge_1008961.png" --- # Selling, in particular, can be a challenge; many investors… ![“Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. This temptation must be resisted; tax considerations aside, when a security reaches full valuation, there is no longer a reason to own it.” quote by Seth Klarman](https://sms4smile.com/quotes/i/d72/seth-klarman-1979_challenges_selling-in-particular-can-be-a-challenge_1008961.png) [Download](https://sms4smile.com/quotes/i/d72/seth-klarman-1979_challenges_selling-in-particular-can-be-a-challenge_1008961.png) [Open image](https://sms4smile.com/quotes/i/d72/seth-klarman-1979_challenges_selling-in-particular-can-be-a-challenge_1008961.png) > “Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. This temptation must be resisted; tax considerations aside, when a security reaches full valuation, there is no longer a reason to own it.” [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Investors often become overly optimistic when assets perform well, but disciplined resistance to holding overvalued securities is essential. **In simple terms:** Resist optimism when assets soar. Key Takeaway Stick to disciplined investing. Themes investment discipline valuation psychology Mood cautious analytical Type advice philosophical When to use this quote - stock market - portfolio management - retirement planning - asset allocation Key Concepts behavioral finance value investing Questions to Reflect On - How do you assess true valuation? - What strategies prevent overconfidence? A Different Perspective Market pressure can cause premature selling. ★ ★ ★ ★ ★ No ratings yet [Challenges](https://sms4smile.com/quotes/about/challenges/) [Consideration](https://sms4smile.com/quotes/about/consideration/) [Customer](https://sms4smile.com/quotes/about/customer/) [Cybersecurity](https://sms4smile.com/quotes/about/cybersecurity/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investors](https://sms4smile.com/quotes/about/investors/) [Optimistic](https://sms4smile.com/quotes/about/optimistic/) [Performing well](https://sms4smile.com/quotes/about/performing-well/) [Reason](https://sms4smile.com/quotes/about/reason/) [Security](https://sms4smile.com/quotes/about/security/) [Selling](https://sms4smile.com/quotes/about/selling/) [Taxes](https://sms4smile.com/quotes/about/taxes/) [Temptation](https://sms4smile.com/quotes/about/temptation/) [Valuation](https://sms4smile.com/quotes/about/valuation/) ## Related quotes > [The cost of performing well in bad times can be relative underperformance in good times.](https://sms4smile.com/quotes/seth-klarman/the-cost-of-performing-well-in-bad-times-can-be-relative/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [We are not so brazen as to believe that we can perfectly calibrate valuation; determining risk and return for any investment remains an art…](https://sms4smile.com/quotes/seth-klarman/we-are-not-so-brazen-as-to-believe-that-we-can-perfectly-calibrate/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Beware leverage in all its forms. Borrowers - individual, corporate, or government - should always match fund their liabilities against the duration of their…](https://sms4smile.com/quotes/seth-klarman/beware-leverage-in-all-its-forms-borrowers-individual-corporate-or/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during…](https://sms4smile.com/quotes/seth-klarman/the-latest-trade-of-a-security-creates-a-dangerous-illusion-that-its/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Investing is the intersection of economics and psychology. The analysis is actually the easy part. 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We want to make sure nothing gets in the way of our children performing well academically, including hunger.](https://sms4smile.com/quotes/arne-duncan/hungry-children-are-distracted-children-we-want-to-make-sure-nothing/) [Arne Duncan](https://sms4smile.com/quotes/author/arne-duncan/) > [Music is art, art is life, and we are who we are, and all of these aforementioned women, unless they should choose not to,…](https://sms4smile.com/quotes/lara-st-john/music-is-art-art-is-life-and-we-are-who-we-are-and-all-of-these/) [Lara St. John](https://sms4smile.com/quotes/author/lara-st-john/) > [If you want to know why your people are not performing well, step up to the mirror and take a peek.](https://sms4smile.com/quotes/ken-blanchard/if-you-want-to-know-why-your-people-are-not-performing-well-step-up/) [Ken Blanchard](https://sms4smile.com/quotes/author/ken-blanchard/) > [It's fun when you're winning and performing well, but it's also hard because now you get older, you got responsibilities.](https://sms4smile.com/quotes/rau-shee-warren/it-s-fun-when-you-re-winning-and-performing-well-but-it-s-also-hard/) [Rau'shee Warren](https://sms4smile.com/quotes/author/rau-shee-warren/) > [I was having a conversation with one of my teammates and she asked me, "Aren't you so glad it's over? We don't have to…](https://sms4smile.com/quotes/kelly-clark/i-was-having-a-conversation-with-one-of-my-teammates-and-she-asked-me/) [Kelly Clark](https://sms4smile.com/quotes/author/kelly-clark/) > [When a new idea comes our way, we must put it on our mental scales and weigh it carefully before deciding its value.](https://sms4smile.com/quotes/jim-rohn/when-a-new-idea-comes-our-way-we-must-put-it-on-our-mental-scales-and/) [Jim Rohn](https://sms4smile.com/quotes/author/jim-rohn/) ## More by Seth Klarman > [Unlike return, however, risk is no more quantifiable at the end of an investment that it was at its beginning. Risk simply cannot be…](https://sms4smile.com/quotes/seth-klarman/unlike-return-however-risk-is-no-more-quantifiable-at-the-end-of-an/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Because investors are not usually penalized for adhering to conventional practices, doing so is the less professionally risky strategy, even though it virtually guarantees…](https://sms4smile.com/quotes/seth-klarman/because-investors-are-not-usually-penalized-for-adhering-to/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is risk aversion.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-risk-aversion/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Be focused on process and not outcome](https://sms4smile.com/quotes/seth-klarman/be-focused-on-process-and-not-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [There is an old saying, "How did you go bankrupt?" And the answer is, "Gradually, and then suddenly." The impending fiscal crisis in the…](https://sms4smile.com/quotes/seth-klarman/there-is-an-old-saying-how-did-you-go-bankrupt-and-the-answer-is/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [In a rising market, everyone makes money and a value philosophy is unnecessary. But because there is no certain way to predict what the…](https://sms4smile.com/quotes/seth-klarman/in-a-rising-market-everyone-makes-money-and-a-value-philosophy-is/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.](https://sms4smile.com/quotes/seth-klarman/ultimately-nothing-should-be-more-important-to-investors-than-the/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The best protection against risk is knowing what you are doing.](https://sms4smile.com/quotes/seth-klarman/the-best-protection-against-risk-is-knowing-what-you-are-doing/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Warren Buffett once wrote that value investing is like an inoculation--it either takes or it doesn't--and when you explain to somebody what it is…](https://sms4smile.com/quotes/seth-klarman/warren-buffett-once-wrote-that-value-investing-is-like-an-inoculation/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [It is important to remember that value investing is not a perfect science. It is an, with an ongoing need for judgment, refinement, patience,…](https://sms4smile.com/quotes/seth-klarman/it-is-important-to-remember-that-value-investing-is-not-a-perfect/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Value investing is at its core the marriage of a contrarian streak and a calculator.](https://sms4smile.com/quotes/seth-klarman/value-investing-is-at-its-core-the-marriage-of-a-contrarian-streak/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [The avoidance of loss is the surest way to ensure a profitable outcome.](https://sms4smile.com/quotes/seth-klarman/the-avoidance-of-loss-is-the-surest-way-to-ensure-a-profitable-outcome/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Do not suffer interim losses, relish and appreciate them](https://sms4smile.com/quotes/seth-klarman/do-not-suffer-interim-losses-relish-and-appreciate-them/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [Ratings agencies are highly conflicted, unimaginative dupes. They are blissfully unaware of adverse selection and moral hazard. Investors should never trust them.](https://sms4smile.com/quotes/seth-klarman/ratings-agencies-are-highly-conflicted-unimaginative-dupes-they-are/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) > [It is crucial to have a strategy in place before problems hit, precisely because no one can accurately predict the future direction of the…](https://sms4smile.com/quotes/seth-klarman/it-is-crucial-to-have-a-strategy-in-place-before-problems-hit/) [Seth Klarman](https://sms4smile.com/quotes/author/seth-klarman/) [Explore all 193 Seth Klarman quotes ](https://sms4smile.com/quotes/author/seth-klarman/) ## More Challenges quotes > [I know for my wife and I, we always loved the idea of being young parents. It is an incredibly inspiring and challenging job…](https://sms4smile.com/quotes/taylor-hanson/i-know-for-my-wife-and-i-we-always-loved-the-idea-of-being-young/) [Taylor Hanson](https://sms4smile.com/quotes/author/taylor-hanson/) > [Our biggest challenge is to eliminate the popular perception that economists don't have anything useful to say.](https://sms4smile.com/quotes/mark-zandi/our-biggest-challenge-is-to-eliminate-the-popular-perception-that/) [Mark Zandi](https://sms4smile.com/quotes/author/mark-zandi/) > [I think books in which people are really happy and things are going well are probably the most challenging novels there are to write,…](https://sms4smile.com/quotes/anna-quindlen/i-think-books-in-which-people-are-really-happy-and-things-are-going/) [Anna Quindlen](https://sms4smile.com/quotes/author/anna-quindlen/) > [I think the next 50 years are going to present the human race with challenges that so far exceed the limitations of geopolitical boundaries…](https://sms4smile.com/quotes/zachary-quinto/i-think-the-next-50-years-are-going-to-present-the-human-race-with/) [Zachary Quinto](https://sms4smile.com/quotes/author/zachary-quinto/) > [“Doing the work to transform your dreams into reality is like walking across the earth. It can be that hard, and it can take…](https://sms4smile.com/quotes/dragos-bratasanu/doing-the-work-to-transform-your-dreams-into-reality-is-like-walking/) [Dragos Bratasanu](https://sms4smile.com/quotes/author/dragos-bratasanu/) > [I want to be perceived as a guy who played his best in all facets, not just scoring. A guy who loved challenges.](https://sms4smile.com/quotes/michael-jordan/i-want-to-be-perceived-as-a-guy-who-played-his-best-in-all-facets-not/) [Michael Jordan](https://sms4smile.com/quotes/author/michael-jordan/) > [People in great groups have blinders on. Their work is all they see. They value failures as learning opportunities. They are optimistic, not realistic,…](https://sms4smile.com/quotes/warren-g-bennis/people-in-great-groups-have-blinders-on-their-work-is-all-they-see/) [Warren G. Bennis](https://sms4smile.com/quotes/author/warren-g-bennis/) > [If, as I anticipate, a wide array of personal, portable information/communication devices becomes increasingly important and widespread for information-intensive users, it will be a…](https://sms4smile.com/quotes/tom-peters/if-as-i-anticipate-a-wide-array-of-personal-portable-information/) [Tom Peters](https://sms4smile.com/quotes/author/tom-peters/) > [“Two powerful, little words I've learned to use when facing challenges, fears, and doubts— so what? ”](https://sms4smile.com/quotes/richelle-e-goodrich/two-powerful-little-words-i-ve-learned-to-use-when-facing-challenges/) [Richelle E. Goodrich](https://sms4smile.com/quotes/author/richelle-e-goodrich/) > [It's a challenge to work a character's arc into a format in which you only have a very limited amount of time to grow…](https://sms4smile.com/quotes/ginnifer-goodwin/it-s-a-challenge-to-work-a-character-s-arc-into-a-format-in-which-you/) [Ginnifer Goodwin](https://sms4smile.com/quotes/author/ginnifer-goodwin/) > [I personally think if something's not a challenge, there's no point doing it, because you're not gonna learn much.](https://sms4smile.com/quotes/anonymous/i-personally-think-if-something-s-not-a-challenge-there-s-no-point/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Men want a challenge, but they want a challenge they can win.](https://sms4smile.com/quotes/whitney-gaskell/men-want-a-challenge-but-they-want-a-challenge-they-can-win/) Whitney Gaskell > [Growing up with a parent in the army, I saw firsthand the challenges our service members face when transitioning to new jobs after time…](https://sms4smile.com/quotes/sharice-davids/growing-up-with-a-parent-in-the-army-i-saw-firsthand-the-challenges/) [Sharice Davids](https://sms4smile.com/quotes/author/sharice-davids/) > [Nobody challenges me. I challenge myself.](https://sms4smile.com/quotes/shakuntala-devi/nobody-challenges-me-i-challenge-myself/) [Shakuntala Devi](https://sms4smile.com/quotes/author/shakuntala-devi/) > [Challenging is good, like good conversation, yes? Who wants to have dinner with the same old easy listening music sounding friends all the time?](https://sms4smile.com/quotes/hilton-als/challenging-is-good-like-good-conversation-yes-who-wants-to-have/) [Hilton Als](https://sms4smile.com/quotes/author/hilton-als/) [Browse all 8,851 Challenges quotes ](https://sms4smile.com/quotes/about/challenges/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Selling, in particular, can be a challenge; many investors are tempted to become more optimistic when a security is performing well. 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