Profit Booking Approach

Which approch is better for profits -

  1. Stay invested in single fundamental strong stock for 5-10yrs with growth opportunity and continue if still fundamentals are right?

2. Keep rotating money if we get desired profit within monthly, quarterly or yearly and later profit too invest in other opportunities and continue same for 5-10 years.

I think second approch will earn more and get benefit of compounding. Please share your views.


Second one works if you are an active investor. You need to spend time on research on both micro and macro trends, performances, etc
First one works if you are a passive investor. Are you recommending investing in a single stock for 5-10 years? Maybe a Portfolio of 5-10 stocks?

The problem is most investors think they are the 2nd type and end up screwing up.

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Thank you @Umar for your advice.
Yes, Portfolio of 10 -12 stocks. Here Single I was referring to particular stock from portfolio abd not booking profit until fundamental are good.