Just ask investors in the decade's top turnaround play to date,
(DPZ - Get Report)
turned things around. Its shares have climbed by nearly 150% in the last two years. Although they have recovered a bit from their lows, they're off by about 8% in the last three months. Again, taking at least something off of the table probably represents the prudent choice.
While I'm on record as calling WFM
the most perfect stock in an imperfect market
, the same type of thinking applies here.
I have a personal connection to Whole Foods. The company has four locations within about one mile in either direction of my house. I can comfortably walk to two of them. I shop at two on a regular basis. I like the stores. I like the products. I like what they've done in many areas, particularly price and design.
Whole Foods runs a tight ship. It's an incredible operation. If I owned the stock, I might want it to be one of those that moves from generation to generation. But, one more time, perfection in front of Wall Street analysts and investors cannot last forever. Whole Foods' day to misstep and get torched will come.
When it does, it's not a sin to be in the stock and to buy more on weakness, but it will sure feel good if you realized some profits at or somewhere near the top. Because you really cannot time when the top is coming, it's best to trim positions when all seems right in the world, just as it's often smart to buy when a stock or the broad market is in chaos.
At the time of publication, the author was long INTC, MSFT and NOK
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.