Having read the article I came to the following conclusions. Taking into consideration all the facts that provoked the situation, I think that selling the stock was the only right decision. Jared Jackson as a stockbroker was and had to protect the money and investments of his clients.
Today a lot of investors are becoming inclined in many social, ethical, and moral rules and laws of the companies which they have in their ownership. You can decide that the company, which you have in your ownership, produces methods or goods which contradict your social or moral beliefs. That is why there is no best decision than to sell their stocks.
To my mind, the main reason for Jared to sell the stocks was his wish to save the fiduciary money of his investors. Of course, it was really hard for him to contradict the advice of his father with whom he was so close after his mother’s death. But business and, especially, stock affairs have nothing to do with family relations. From a social point of view, actions of Jared were really unethical, because he did not take into consideration the words of his closest person.
But from the point of view of a stockbroker and a responsible worker, he did everything right. Jared’s only responsibility was to keep the investments of his clients safe and he chose the best way to preserve their money.
There can be a lot of other personal reasons to sell stocks that are as good as those that Jared preferred. Before selling, all alternatives and consequences must be considered. There is nothing wrong with realizing that the stock does not work on you and goes further.
Selling the stock for ethical reasons is often an intuitive action. That is why it is based on the human factor which sometimes can be truthful. The same we can see in the given article. Jared did not listen to the opinion of his father, though he made his choice under the influence of his sixth feeling and he was really right. Of course, he thought over all the alternative ways of solving the problem of losing the value of stocks where he invested his money and all the fiduciary costs of the investments.
Jared made his decision based almost only on his instincts:
“Mr. Market is a capricious individual, and sometimes he wakes up in an awfully generous mood and offers to pay you a price far in excess of what your investment is really worth. There’s no reason not to take advantage of his good mood. What you need to ask yourself is how likely it is that your estimate of what the company is worth could go up over time. If your estimate of intrinsic value is likely to rise then it’s worth waiting out periods of mild overvaluation” (Dorsey, p. 1).
So, Jared’s deeds were considered and measured. He took care of the money of his investments. Of course, family values are important, but there is no place for them in your work. Otherwise, a person will not be a professional.
“None goes ever upward, but they can go to nothing. When it trades at a price that can’t be justified by fundamental analysis, sell some or all of it. It most likely will come back to rational levels” (Allrich, p. 1). Perhaps, these were also Jared’s thoughts. And I support his idea of selling the stock as it was the only good way out from the given situation.
References
- Allrich, Ted. Comfort Zone Investing: When to Sell a Stock. BloggingStocks, 2010.
- Dorsey, Pat. When to Sell a Stock. NewsMorningstar, 2004. Web.