Q. I’ve done well with my Texas Instruments stock. Does it have still more jump in it or is it time to sell?M.V., via the internet

A. The world’s largest maker of analog chips enjoyed a strong rebound thanks to increased orders from the industrial machinery market.

However, semiconductors are a cyclical business, and the firm’s performance is slowing down. You must decide whether you want to take your profits before an expected lull, since the long-term future remains bright.

Consumers in developed markets aren’t buying computers and televisions as aggressively as they once were, and the industrial market is also losing momentum. The company expects lower revenues over the next couple of quarters.

Longer term, Texas Instruments (TXN) has an enormous customer base and a large and effective sales staff. Besides analog, it has a leading market share in several other chip segments that enable it to cross-sell various products to long-term users.

Texas Instruments shares are up 23 percent this year following last year’s 68-percent increase. Third-quarter revenues were up 30 percent compared to the year-earlier quarter.

The Dallas-based firm has a strong balance sheet with plenty of cash and no debt, enabling it to provide dividends and buy back shares. It has also been able to buy advanced manufacturing equipment from bankrupt semiconductor firms.

Consensus analyst rating of Texas Instruments stock is between “buy” and “hold,” according to Thomson Reuters, consisting of 10 “strong buys,” 10 “buys,” 16 “holds,” three “underperforms” and one “sell.”

The most profitable portion of the company is its core analog-chips business, which it has lately been reemphasising. Analog is best known for data converters, which allow real-world analog signals, such as voice and video, to be processed digitally. Such chips are not as difficult or expensive to manufacture as some other kinds.

Texas Instruments also has a strong position in application processors for higher-end use in the growing smart phone market. It is getting out of the baseband chip business because phone manufacturers are seeking numerous sources for chips rather than relying on one supplier. The company’s famous calculators generate less than five percent of its revenues.

It has veteran management. Richard Templeton, who has worked at Texas Instruments for three decades, has been CEO since 2004 and added chairman in 2008.

Earnings are expected to increase 117 percent this year and two percent next year, according to Thomson Reuters. The five-year annualised growth rate is projected to be 10 percent versus 15 percent expected for the semiconductor industry.

Q. I am a shareholder in Longleaf Partners Small-Cap Fund and wonder whether it is still a worthwhile holding.P.F., via the internet

A. Although currently closed to new investors, this $2.6 billion fund has provided noteworthy results for its many long-term shareholders.

A decision on whether you stay the course depends on whether you are patient and have confidence in the fund’s experienced managers, who are clear about how they invest, are willing to take risks and always stick with their holdings.

Longleaf Partners Small-Cap Fund (LLSCX), up 23 percent over the past 12 months, has a three-year annualised decline of 1.5 percent and a five-year annualised return of 4 percent.

“Managers Staley Cates and Mason Hawkins (co-managers since 1991) are some of the most experienced managers out there and highly respected for their commitment to a value investing strategy,” said Gregg Wolper, mutual fund analyst with Morningstar Inc. in Chicago. “This year it is not a standout one way or another, but over the long term it has done very well.”

Longleaf Partners Small-Cap Fund has a concentrated portfolio of 20 stock names, holds sizable positions and is willing to take chances on out-of-favour stocks. It buys small-cap companies trading at discounts of 40 percent or more to estimates of their intrinsic values. Managers estimate future free cash flow and net assets, considering the sale prices of comparable businesses as well. The fund lags behind the overall market at times.

Cates and Hawkins, who also manage Longleaf Partners Fund and Longleaf Partners International Fund, rely on a group of in-house analysts. Managers and analysts are required by parent company Southeastern Asset Management to keep all of their own invested assets in Longleaf Partners funds, aligning their interests with those of shareholders.

Consumer services and financial services each represent about 20 percent of the fund’s assets, with other concentrations in industrial materials, telecommunications and business services. The fund’s top stock holdings are tw telecom inc., Pioneer Natural Resources Co., Fairfax Financial Holdings Ltd., Fair Isaac Corp., Dillard’s Inc., Washington Post Co., Martin Marietta Materials, Service Corp. International Inc., Texas Industries Inc. and Willis Group Holdings Plc.

Q. What is the difference between Class A and B shares of a mutual fund?B.F., via the internet

A. Each share class of broker-sold mutual funds invests in the same portfolio of investments, but how you pay differs. The fees paid and when they are paid will affect performance results.

Class A shares typically have a front-end “load” (sales charge) that is paid by the shareholder at the original purchase. They tend to have lower annual expenses than other share classes and some reduce the amount of front-end load as the size of your investment increases.

Class B shares usually have a sales load that is paid when the shareholder sells the shares. The amount of the load typically declines at every anniversary of the purchase date and, if sold in year seven or later, the load is zero. However, annual expenses tend to be higher than with A shares.

“For long-term investors, between those two share classes, the A shares are the lower-cost alternative and the industry trend has been away from B shares,” said Jerry Gray, broker relations manager for MMA Praxis Mutual Funds, Goshen, Ind., whose firm last year shut down its B share class.