Recent Sell

BuySell

More sales in our portfolio as I try to save our hard earned capital instead of being blasé about it. Whether now is a good time to sell after stocks have fallen more than 20-30% from their all time highs is debatable. But having an anchoring bias to an all-time high prices & valuation is exactly the reason why I see some investors trapped and not accepting the reality.

Continue reading

Recent Sell

BuySell

Another set of sales in our portfolio. A lot of stocks and ETFs in this round. The ongoing correction has been a spectacle to behold. The stock and bond markets have diverged quite a lot over the past few days. What initially appeared to be a dip which lot of investors chased is starting to look like the start of a much bigger issue. Where this market is headed is anyone’s guess. For the record, I don’t believe the media narrative that the market is falling just because of COVID-19 (and then things will return to normal once warm weather is here). There have been lots of fundamental problems and signs of excess for a while and COVID-19 was probably just the initial domino to fall.

I bought the initial dip as well when the correction started two weeks ago, but decided to reverse course and sell some of my high beta stocks & broad index funds and go to cash. Even with some of my high conviction long investments (I know…I appear crazy right now)..but with the Fed panicking (& all other central bankers hitting the panic button), I believe we will see a lot more problems before the next cycle of growth can begin. A lot of these high beta stocks were close to my cost basis (as I initiated a position in most of them in 2019), so in a negative environment, I expect pick them back up at a much lower price.

Continue reading

Recent Sell – FIH, NVO

BuySell

We are in correction territory with the ongoing fall in the equity markets. During the ongoing selloff, I decided that I needed to shed a couple of the names that I had been considering for a long time before things went even deeper in the red. This is part of the portfolio cleanup that I’ve been working on and this iteration includes two recent sales.

First sale: A company that has lagged and severely underperformed in my portfolio even though on the surface it looks promising and has good assets. I decided to exit my position in Fairfax India Holdings (FIH.U.TO). The stock has not performed at all over the past few years and continues to trade below book value.

Total loss = 24.6% (holding period = ~2.4 yrs)

Continue reading

Recent Sell – EVI, BBB

BuySell

A bit of portfolio cleanup with a couple of recent sales in my portfolio. As mentioned in my monthly outlook posts, I am looking for portfolio simplification (and getting rid of weak names in the portfolio).

First sale: This documentation is a bit dated since I sold this in October, but never officially wrote about it. I sold my small position in EVI Industries (EVI) and booked a loss. Its a company that has been hyped up and while there are some really interesting aspects of the company that I like, I am not completely convinced if it has a place in my portfolio.

Total loss = 10.3% (holding period = approx 6 months)

Second sale: I closed my position in Brixton Metals Corp (BBB.V). This is a commodity exploration company with assets in Canada. After a big range of ups & downs over the last couple of years, I have decided to liquidate it since I needed to raise some cash for other purchases. I had made up my mind to sell this a while ago, but was hoping for a recover in stock prices — maybe it’ll come, but I see better opportunities elsewhere. So, taking a big loss on this one.

Total loss = 61.9% (holding period = approx 1.5 yrs)

Full Disclosure: Our full list of holdings is available here.