1Mon·

Take profits?

The share has already performed very well and I am currently up around 150%. The analysts' price targets are often below the current price. Would you take a few profits? But then where to invest? Many thanks for your assessment.

8 Comments

Michael@FireSale

1Mon

You can certainly do this, but not on the basis of analysts' opinions. My opinion: In principle, don't listen to analysts. When a share goes up, they raise their price targets and when it goes down, they lower them.

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Sven D.@L3xclusive

1Mon

I don't know how many SAP shares you hold, but I would want to get the dividends. As you know, SAP doesn't pay very little.

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Chris@IronEagle

1Mon

@L3xclusive Good point. Due to the extreme increase, the dividend yield of 0.8% is no longer quite as good. On the capital employed it would be around 2.2%. I have 150 shares.

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Max P.@Planck

1Mon

@L3xclusive When you sell, you must also keep in mind what you are doing with the money. If you reinvest it, the new investment should deliver at least the same performance or higher returns.

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Chris@IronEagle

1Mon

@Planck Thank you! That's exactly the problem. SAP is a solid investment in the largest European company after all. I don't really have an alternative.

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Fabian@d4Y

1Mon

I have sold SAP short, I don't believe in a major collapse, but in a setback😉
Is it your biggest position? If so, then I would take a portion out.

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Chris@IronEagle

1Mon

@d4Y Thank you! Has become the largest position. After I saw yesterday at Rheinmetall how quickly some of the profits can be gone, profit taking might not be wrong. But what is the alternative investment, as all shares are quite expensive or rightly cheap and will remain so for a long time, e.g. car stocks, Bayer etc.?

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Fabian@d4Y

1Mon

@IronEagle then the question would be how much bigger, moreover I don't know your time horizon and your strategy, or your previous investments... from that point of view it's difficult to give any advice... basically I would advise you to go for a broad etf like $ACWI or the one from $GERD, if you want individual stocks, Nestlé or novo nordisk could be interesting in the long term... but then SAP isn't the worst house number either 😀

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