I don't often sell my ASX 200 shares. Warren Buffett often tells investors that his favourite holding period for an investment is forever, and this is an approach I like to emulate with my own ASX share portfolio. When I buy an ASX share, I do so with the expectation that it will feature in my last will and testament.
However, I have been investing in ASX shares for more than a decade now. As such, my investing goals and priorities have shifted quite a bit. This means that what might have made sense for me in years gone by no longer holds muster for my investing needs in 2025. That's where my investment in Telstra Group Ltd (ASX: TLS) comes into play.
Telstra is, or more accurately was, one of the first ASX 200 shares I ever bought. Because of this, I had a certain fondness for the telco. I was fortunate enough to buy Telstra shares when they were significantly cheaper than they are today. Since my first buy, I have watched as the stock has climbed higher and higher, all the while paying me a rising, fully franked dividend.
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So why did I sell this ASX 200 share?
As I've recently documented, I was happy to just keep owning this ASX 200 telco stock.
However, I was recently presented with an investment opportunity that was too good to miss. This required me to free up some capital from my ASX 200 share portfolio. At the time, Telstra had just clocked a new 52-week (and seven-year) high of $4.94. When I sold, Telstra was trading on a price-to-earnings (P/E) ratio of over 35. It was my view that, at this valuation, Telstra's future growth prospects were not enough to justify this earnings multiple. As such, I concluded that the money I had locked up in Telstra shares could be better used elsewhere.
So, somewhat reluctantly, I sold out my position. Nostalgic positions are nice to have in an ASX portfolio. I still have one or two myself. But, when judging the best places to put one's money, potential returns always trump nostalgia for me. Telstra had served me well. But it had also run its course for my goals.
Sure, it might continue to push higher from here, perhaps even once again cracking the $5 mark. There's no doubt it would have continued to be a generous dividend payer, too.
But, at the end of the day, I came to what I think to be a fairly likely conclusion that Tesltra's returns wouldn't have been too fantastic going forward. It will probably continue to outperform cash and be a fantastic source of dividend income. But the broader market? I'm not convinced.
Letting go of one of my oldest ASX 200 shares has been an interesting experience. But I'm confident that time will tell that it is the right move.
