I've been a long-time holder of National Australia Bank Ltd (ASX: NAB) shares, with memories stretching back to some of my earliest investments in the ASX 200. But as March unfolds, I find myself contemplating a departure from my steadfast 'never sell' rule when it comes to NAB.


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Typically, I'm not one to part ways with my shares easily. Selling involves a mental gymnastics of its own in the stock market world, adding layers of complexity to an already intricate process. Warren Buffett's sage advice to hold stocks forever has long been my guiding principle.


However, reality sometimes deviates from the ideal. Past experiences have taught me that parting with investments isn't always avoidable, often due to misjudgments in assessing a company's true worth.


Yet, in the case of NAB, I don't regret my decision to hold onto its shares over the years. The steady capital appreciation and reliable dividend income characteristic of an ASX 200 bank share have certainly been rewarding.


So why the sudden contemplation of parting with my NAB shares?


My unease stems from valuation concerns. NAB's share price has surged impressively in recent months, hitting a series of new 52-week highs, culminating in a remarkable $35.12 on a recent Friday. This represents a near 40% gain from the lows witnessed in June of the previous year.


Historically, whenever NAB shares have reached such dizzying heights, a correction has often followed suit. Given its cyclical nature, the ASX bank sector stock is no stranger to fluctuations, with dividends historically outstripping capital gains.


Hence, the prospect of selling my NAB shares in March and potentially reacquiring them at a later stage when prices dip seems increasingly appealing. Not only could this strategy yield a more favorable entry point with a higher dividend yield, but it might also prove financially prudent in the long run.


As someone who has adhered staunchly to the 'never sell' mantra, the allure of NAB's newfound highs has certainly given me pause for thought.

In Conclusion

Investing is often a delicate balancing act between sticking to established principles and adapting to evolving market conditions. While holding onto shares for the long term is an attractive proposition, there are instances where strategic selling may prove advantageous, as exemplified by the current scenario with NAB.