Friday, September 23, 2016

Recent sells: Rebalancing

I have been performing reallocation of my portfolio to overweight in a fewer selection of my favorite companies with consistently higher growth.  My portfolio is at a stage where my core positions are very sizable and I want to have more allocation in growth since my base foundation is already set. Since I am young and many years away from retirement, I do not want to be too conservative in only core names.

I plan to eventually have heavier weightings in fewer stocks that I have done extensive research for and favor, instead of having all of my stocks in many tiny weightings. Diversification is important but I have found that is dilutes results if one has done extensive homework. For those that do not like to research stocks everyday and prefer a more passive approach, I recommend heavy diversification.

I have received $100 bonus by my broker so I used some of that to fund sells.

Taxable account:
XOM - $3623  (complete exit)
ABT - $4509  (only selling partially)
PG - $4567  (only selling partially)
UTX - $3116 (complete exit)

Tax-sheltered account:
PX - $1978 (complete exit)
D - $2689 (selling partial)
JNJ - $3322 (selling partial)


That's a lot of money actually. I never knew things could add up so quickly when contributions are done week to week. I will be paying a bit from gains but I have $1000 tax loss harvesting carry over from last year so it should offset the gains nearly completely.

A few more sales will occur on Monday. $3600 is also being added from my bank to my brokerage account. In total around $27,400 in cash will be available for purchase.

I exited XOM since I'm nearly flat and I don't like the volatility and earnings unpredictability of the energy space. I can get very consistent and great predictable returns in many other sector names that are not cyclical. It's just not worth wasting that cash sitting in Exxon.

I sold ABT since I am seeing better earnings growth in different companies that I feel are worth more for my money. I want more of my money tied to higher growth companies and ABT is a lower growth stable blue chip that is high quality so I will still keep a decent chunk.

Selling PG, D, and JNJ were done to take some money off the table for positions I've done well in. I will take the profits and put the money to work in higher growth. PG is grossly overpriced in my opinion. I can get much better growth for that same P/E ratio in another company.

I prefer APD over PX so I sold PX.



Tuesday I will purchase a large holding with the funds to overweight on select positions. MO is on the watchlist. Stay tuned.

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