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  5. TVK: Hi, looking at a couple of stocks that have had a good run. [TerraVest Industries Inc.]
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Investment Q&A

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Q: Hi, looking at a couple of stocks that have had a good run. TVK comes to mind, I now have about a 7%+ position and doubled my money on this stock (thanks for your good work). I know it’s a personal preference but I’m unsure, part of me says let it run, another says sell at least 25% .
Do you have a set rule that you use with higher growth stock? And of course if I sell I have to find something else, or preserve my capital. (A good problem to have).
Asked by Brad on May 14, 2025
5i Research Answer:

We tend to have a 7% 'watch closey' rule and a 10% 'time to sell at least some' rule. But we have broken both rules before. We watch the market for clues, and see stock strength as confirmation thant we are on to a good thing as opposed to a big concern. With a small company transitioning to a larger market cap (as TVK is doing) we tend to be less concerned. Simply put, more investors can now buy it simply because it has gone up. This can change the valuation nicely but the company stays exactly the same in terms of risk and other metrics. TVK is not cheap so some of this has occurred already, but seeing such a transition is a beautiful thing in the market. A company growing AND getting a higher valuation can do really really well at times.