Recent Sell – Seg Funds

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This is part of my annual sale in my employer-offered retirement matching plan. As part of the employment compensation package, I am encouraged to contribute to a group retirement plan, to which my employer matches 50% of the funds. The catch was that I had to choose from a pool of segregated funds offered by an insurance company. These funds come with high management fees but in order to not leave money on the table, I decided to make regular contributions. I originally documented it in this post.

Once a year, I am given a freebie to withdraw funds and move them to my other self-directed retirement accounts. My last such move was exactly a year ago in Jan 2017. I sold my positions in the following two funds. Going forward I will be repeating this move each January, so that my overall expenses fees remain low.

  • US Equity Index Seg Fund
  • International Equity Seg Fund

I will continue taking advantage of this benefit from my work and regular contributions into these funds will continue as usual on a monthly basis.

Full disclosure: Our full list of holdings are available here.

Recent Sell – CNR

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Here’s a quick update on a sale in my portfolio. Sales are always hard, especially when times are good and investors are riding the coattails of one of the best performing bull markets in modern times. When things are rosy, we tend to feel that the good times will continue forever. How many times have we heard from various commentators in the media that this market will never go down, or we will never see a financial crisis in our lifetimes. It is this kind of hubris that sends me running for the hills.

Regardless, its the insane valuations for some of the stocks that I regard as a selling point. What lies ahead…can the company keep its revenues and earnings rising year after year? This particular sale has been a hard one as I consider it an extremely strong company and want to continue holding for a long time. But you know what they say about falling in love with your investments…

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Recent Sell – CHV

A recent sale in my portfolio capturing some significant gains and booking profits.

The recent run-up in Marijuana stocks has been a sight to behold. Investors seem to be in a FOMO frenzy, whether purely an excitement and positioning for the legalization or recreational use of marijuana in Canada come summer 2018, or a Santa Clause rally, or year-end window dressing by institutions…it’s hard to tell. However, when the market offers such spectacular returns in a short amount of time, I remain skeptical of whether this momentum will hold. See the following chart of the Marijuana Index and the returns in the last few weeks/months.

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Recent Sell – ADM, SBUX

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A quick update on three sales in my portfolio. Both companies below are still great companies to hold for the long haul, and I may consider re-initiating a position in them during the next cycle. In addition, part of the reason for also selling is to move some of these funds towards passive investing as I want to reduce my number of holdings and focus on a smaller group of companies.

Archer Daniels Midland (ADM)

A dividend champion that I’ve held since 2013. The food/commodity business is a tough sell and there are some very good bullish and bearish cases for holding this company. However, the company has continued to increase payout ratios over the past few years as it wants to grow its dividends, just for the sake of record. This is not the right move imo, and I will look for a better home for my investment dollars.

Total profit (including dividends): 32.8%. 

Holding period: 4.5 yrs

Starbucks Corp (SBUX)

This is one of those investments that has traded sideways for me. With the founder Howard Schultz stepping down from CEO position, the spark has gone from this stock. However, the company is still functioning pretty well. I am not as confident in the growth story of this company as I was a couple of years ago. I have decided to exit this position, esp this late in the market cycle and re-evaluate in coming months/years.

Total profit (including dividends): 9.2%. 

Holding period: 2 yrs

What do you think of these sales? Let me know with a comment below.

Recent Sell – Hive Blockchain Technologies

A quick update on a sale in my portfolio.

Last month, I opened a new position in a little known company that has seen a tremendous interest in investors and seen massive gains. The company in question is Hive Blockchain Technologies (HIVE.V). I indicated in my purchase post that I broke all my rules and took a gamble with this investment. It’s a company that I did not know much about and the financials were also a bit murky when it IPO’d — still it was a play on investor psychology and momentum and I decided to take a gamble. I knew there was a dearth of blockchain related companies in the capital markets and the risk/reward scenario was good enough for me to take the risk. That risk paid off as I witnessed a 200+% return in just over a month.

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