#1
When to Sell
"When the facts change, I change my mind. What do you do, sir?"
Adapt your investment thesis when fundamentals genuinely change — not from price swings.
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Warren Buffett📌 Selling & Review
Warren Buffett's Selling & Review Rules
These are 3 Selling & Review principles distilled from Warren Buffett's writing and public remarks. Use them as a decision checkpoint: translate each rule into a yes/no test, write what evidence would change your mind, and set a review date before you act. When a rule feels vague, open the full principle page and capture the driver you can verify (cash flows, leverage, incentives, competitive edge). This is educational, not investment advice—double-check primary sources and fit every rule to your time horizon, risk budget, and constraints.
matrix.rulesQuickChecklistTitle
- Clarify your decision: time horizon, position size, and what would change your mind.
- Choose 3–5 principles from this Selling & Review set and write each as a yes/no check.
- Define 2–3 disconfirming signals (invalidation triggers) before you act.
- Record the inputs you used (numbers, sources, assumptions) so you can audit later.
3 principles·Selling & Review
3 Key Selling & Review Principles
#2
Never Sell Wonderful Companies
"When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."
Hold exceptional businesses indefinitely.
Read Full Analysis →#3
Simplicity Over Complexity
"There seems to be some perverse human characteristic that likes to make easy things difficult."
Complexity in investing usually signals danger, not sophistication.
Read Full Analysis →How to apply Warren Buffett's Selling & Review principles
Use this page as a workflow, not a collection of quotes. Pick 3–5 principles, translate each into a concrete check, and review your decisions on a fixed cadence. These are educational guardrails—always verify facts and match them to your own constraints.
- Clarify your decision: time horizon, position size, and what would change your mind.
- Choose 3–5 principles from this Selling & Review set and write each as a yes/no check.
- Define 2–3 disconfirming signals (invalidation triggers) before you act.
- Record the inputs you used (numbers, sources, assumptions) so you can audit later.
- Run the checklist when you feel urgency (FOMO, panic) and delay action if you cannot answer.
- Review outcomes on your cadence: what you followed, what you ignored, and what to adjust next cycle.
Boundaries and common misreads
- Don’t treat a principle as a buy/sell signal—convert it into evidence you can verify.
- Avoid “name-dropping” Warren Buffett: if you can’t explain the reasoning, you can’t borrow the rule.
- If the situation is outside your circle of competence, the right move is often to pass.
- Separate risk from uncertainty: write what could go wrong and what would confirm it.
- If two principles conflict, slow down and document the trade-off instead of forcing certainty.
Rehearse a scenario decision → ·Run a weekly toolkit → ·Browse all principles →
About Warren Buffett
He is the chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company. His investment approach combines the value investing principles learned from his mentor Benjamin Graham with insights on business quality from Philip Fisher.
Frequently Asked Questions
What are Warren Buffett's key selling & review principles?
Warren Buffett has 3 key principles on selling & review. The most important one is "When to Sell" — When the facts change, I change my mind.
How does Warren Buffett apply selling & review in practice?
Warren Buffett applies selling & review through several key principles including "When to Sell" and "Never Sell Wonderful Companies". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Warren Buffett's approach to selling & review unique?
Warren Buffett's approach to selling & review is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Warren Buffett provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
How do I validate Warren Buffett's Selling & Review rules without blindly copying them?
Treat each principle as a hypothesis. Write the evidence you would need, collect it from primary sources when possible (filings, letters, transcripts), and note what would invalidate the conclusion. If you can’t define inputs and triggers, you’re not applying the rule—you’re quoting it.
What’s a practical review cadence for applying Selling & Review principles?
Pick a cadence you can sustain (weekly or monthly) and review process signals first: whether you followed your checklist, respected your boundaries, and documented assumptions. Only then look at outcomes. The goal is fewer low-quality decisions, not perfect prediction.
