Would You Buy it Today?

I once had a finance professor who framed up buy/sell investment decision-making in a unique way. I’ve heard this same perspective many times since, but I remember how much it made me think back to when I was a 20-year-old kid. If you’re sitting on an investment that you don’t know whether you should sell or not, simply ask yourself, “Would I buy it today at this price?” If the answer to the question is yes, then hold. If the answer is no, then sell. Why? Because not making a decision is still a decision. Every time you choose not to sell, you’re choosing to buy at today’s price.

While this has proven to be sage investment advice, I think it’s even more powerful when brought out of the investment space and into the broader context of life. Many of our habits, relationships, jobs, expenses, possessions, and countless other nuances of life, are the residual of past decisions. When the decision was made (let’s call it the buy), it might have been the ideal choice for us. Fast forward months, years, or decades, however, this aspect of our life might not be nearly as ideal as it once was. Therein lies the choice. Would we choose to do this thing today if we weren’t already doing it? If the answer is yes, we should keep doing it (hold). If the answer is no, perhaps it’s time to stop (sell).

I’ve been auditing various aspects of my life, work, and ministry lately, and it’s humbling to recognize how many no’s I’m getting when I ask myself that question. It’s a humbling question, but a worthwhile endeavor. You should give it a shot!