Choosing great growth companies is a great first step in investing, but it's not sufficient if you wish to enjoy years of compounding. But even more important is the ability to resist the urge to sell too soon and instead hold on to those shares as the company goes from strength to strength. Many an investor has regretted parting with their winners too early and then seeing the stock soar as its earnings and cash flows consistently improve.
What you do need to be careful about, though, is whether you have chosen the right companies to buy and hold. Businesses with weak competitive moats and an inability to compete and adapt well to changes in the economic environment do not count as good candidates for a robust investment portfolio. Investors need to keep an eye on business performance and management's actions and plans to ensure that the investment thesis remains valid.
Here are two examples of stocks that I will never think of selling.
Source Fool.com