Investing in the stock market is as much about knowing when to sell as it is about knowing when to buy. Today, I made the decision to sell my shares in ASML Holding NV (ASML), a global leader in semiconductor lithography, at €729 after purchasing them at €654. Here’s why I chose to lock in profits and what this move means for my portfolio.
Why I Bought ASML at €654
I initially invested in ASML because of its dominant position in the semiconductor industry. ASML is the only company in the world that produces extreme ultraviolet (EUV) lithography machines, which are essential for manufacturing advanced chips. With the global semiconductor market booming due to demand for AI, 5G, and IoT devices, ASML seemed like a no-brainer for long-term growth.
Why I Sold ASML at €729
- Profit-Taking Strategy
My investment thesis was based on achieving a solid return within a specific timeframe. When ASML’s stock price hit €729, I realized an 11.5% gain. Deciding to lock in profits aligned with my disciplined approach to risk management. - Market Volatility
The semiconductor sector, while lucrative, is highly cyclical and prone to volatility. Although ASML’s fundamentals remain strong, I wanted to secure gains before potential market corrections. - Portfolio Rebalancing
Selling ASML allowed me to reallocate funds into other opportunities with higher growth potential or better risk-reward profiles. Diversification is key to maintaining a healthy portfolio.
The Bigger Picture
ASML remains a cornerstone of the semiconductor industry, and its technology is irreplaceable. However, successful investing isn’t just about holding—it’s also about knowing when to take profits. By selling at €729, I achieved my financial goal and maintained flexibility to explore new opportunities.
Conclusion
Selling at €729 was a strategic decision to lock in profits and manage risk. While I remain optimistic about ASML’s long-term prospects, taking gains when they materialize is crucial to achieving consistent investment success.
