Having successfully traversed the rings, the exit from the spiral is very simple. Within three years of buying, there is likely to be convergence between intrinsic value and price—leading to a handsome annualized return. Anytime this gap narrows to under 10 percent, feel free to sell the position and exit. You must sell once the market price exceeds intrinsic value. The only exception is tax considerations. If you’re looking at short-term gains as a result, you should hold on until long-term gains can be realized or the price is enough of a premium over intrinsic value to cover the extra tax
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