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Good morning,
There are two sides to investing: buying and selling.
Buying is more exciting. But selling is very important as well. Your sell discipline can make or break your investing strategy.
Note: The 5 Rules Of Deep Value Investing cover what to buy, when to sell, and portfolio construction.
We employ just one primary sell rule at Deep Value Wealth.
Our sell rule logically flows from why we purchased a stock in the first place. Namely:
- We purchase stocks to generate strong total returns.
- To accomplish this, we purchase stocks trading for less than their net current asset value (NCAV).
Our sell rule takes both of the above into account. Our sell methodology is as follows.
Step 1: Is the stock trading below NCAV?
Our strategy buys stocks trading below NCAV. If a current holding is trading below net current asset value, it is not a sell (it's either a buy or hold).
“If one can acquire a diversified group of common stocks at a price less than the applicable net current assets alone – after deducting all prior claims, and counting as zero the fixed and other assets – the results should be quite satisfactory.”
– Benjamin Graham
Step 2: Is the stock generating strong total returns?
If a current holding is trading above NCAV, we examine its performance. If performance is both (1) Better than the S&P 500 and (2) above 0%, we continue holding. This is because the investment is doing what we want it to – generating strong returns.
"The first rule of compounding is to never interrupt it unnecessarily."
– Charlie Munger
Step 3: Sell
If a stock is both trading above NCAV (see Step 1) and not generating strong returns (see Step 2), then it is no longer aligned with why we purchased it, and will be sold.
“Some stocks go up 20–30 percent and they get rid of it and they hold onto the dogs. And it's sort of like watering the weeds and cutting out the flowers. You want to let the winners run.”
– Peter Lynch
Our Sell Rule Eliminates Deteriorating Stocks
Our sell rules appear to only sell based on positive outcomes (when performance is strong).
But the first portion of our sell rule involves NCAV. If a stock is deteriorating and its NCAV falls faster than its share price declines, it will no longer be a deep value stock trading below NCAV value.
And if the share price is declining as well, it will be sold based on our sell rule.
An Additional Sell Rule
We have only one codified sell rule in the 5 Rules Of Deep Value Investing. In practice, some flexibility is required.
The real investing world doesn't perfectly conform to rules. Special situations arise that require logical analysis rather than rigid rule-following.
We reserve the right to sell outside of our one sell rule when special situations arise.
As an example, if a stock were going to be acquired in six months for $10 per share, and it is now trading for $9.95 per share, there's no reason to hold for another six months. The stock is a merger arbitrage play at that point, and not a deep value investment, so it should be sold.
We put our sell rule(s) to work in the Deep Value Report
The Deep Value Report is our flagship service at Deep Value Wealth.
It has everything you need to start adding deep value stocks to your portfolio, including:
- One-off buy recommendations matching our buy rules in the 5 Rules Of Deep Value Investing.
- Actionable sell recommendations on past recommendations as needed matching our sell rules in the 5 Rules Of Deep Value Investing.
Each buy recommendation is thoroughly vetted and researched. This is not a quick screen or automated AI guesswork.
Note: We are focused on the U.S. market, not international stocks.
The stocks we recommend are often unprofitable businesses. But they tend to have catalysts that we believe are likely to unlock shareholder value.
And interestingly, unprofitable (and non-dividend paying) net current asset value stocks have generated better returns than those that are profitable.
Source: Deep Value by Tobias Carlisle, page 133. The above studies count net current asset value stocks as those trading for 2/3 or less of net current asset value.
You will instantly receive our first two buy reports when you join, and all future buy reports as long as you are a member.
- All reports are delivered by email from Ben@deepvaluewealth.com.
- We expect to deliver more buy reports in the coming 1–2 weeks.
- The exact timing of buy reports going forward will fluctuate because our criteria are time-sensitive and highly selective.
- We are targeting rare opportunities, which by definition aren't constantly available in large supply.
- With that said, I expect at least a few new buy recommendations every month, with many more during times of market turmoil (when stock price declines make more opportunities available).
Launch Special Pricing Opportunity
We are offering deeply discounted pricing on the Deep Value Report to celebrate its launch!
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Normal price: $999/year
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It will remain just $299/year.
- 7-Day Free Trial & 60-Day Full Refund Period
There's absolutely no risk to join because you get a 7-day free trial and a 60-day 100% refund period on your initial payment. If The Deep Value Report isn't right for you, just email me at Ben@deepvaluewealth.com to opt out.
- Limited Time No Exceptions Launch Offer
This is a no-exceptions offer. Once it’s gone, it’s gone forever. It ends at 8:00 p.m. CT on August 31, 2026, in just:
There's absolutely no risk to join thanks to our 7-day free trial. But there is serious wealth creation potential from investing with The Deep Value Report.
Note: Enter coupon code LAUNCH if it doesn't apply automatically.
Please email me at Ben@deepvaluewealth.com with any questions. I look forward to hearing from you!
To your compounding wealth,
Ben Reynolds
Founder of Sure Dividend & Deep Value Wealth
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