Another dubious motivation to sell is to unload or cash in on inherited investments. Investors often feel less favorable toward these investments because they didn't choose them and, as a result, react more harshly to price fluctuations than they would in other circumstances. When you inherit shares, however, the previous capital gains are erased. This means that even if the shares are stagnant, you still have a tax-free source of capital that you paid nothing for. If they decrease in value, you will get a tax write-off along with the capital from selling them. If they rise in value, you have nothing to complain about. Just because you have a cash cow, however, doesn't mean you should slaughter it. Hold on to inherited shares until you need them or pass them on yourself.