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Berkshire Hathaway Inc.

Joseph A. Clark: When to sell that stock

Q: When should you shed a long-term stock holding? A: When circumstances change in a big, meaningful way. Not for just a transitory blip. Investing triggers many emotions, especially when investors have a personal attachment to a company and its stock. For years, I witnessed General Motors employees hold onto their positions in their employer's stock, regardless of its price volatility. Personal attachment to companies, especially to former employers or businesses associated with a favorite hobby, is understandable but is also financially dangerous. It turned out that holding GM forever didn't work out so well. After the automaker filed for bankruptcy in 2009, its shares...