Wednesday, April 15, 2020

Recent Sell

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.


I have been pretty ruthless in this set of sales and sold off some of my favorite companies. The worst thing an investor can do is fall in love with a company/stock.
My only loyalty lies with my capital.
When you consider all the macro events going on and the economy coming to a grinding halt (the job cuts are just starting now), we are just getting started with the pain. Following tweet from a Bloomberg writer summarizes where we are & what lies ahead.


So as best I can tell this morning we now have:

- A pandemic crisis
- A supply chain crisis
- A demand crisis
- A labor market crisis
- An equity market crisis
- An oil price crisis
- A brewing bond market crisis
- A developing currency crisis
- A potential housing market crisis


So, here are all the sales from last week.
  • BCE Inc (BCE.TO) Gain = +7.6%
  • Brookfield Asset Management (BAM.A.TO) Gain = +6.8%
  • Brookfield Infrastructure Partners (BIP.UN.TO) Gain = +13.4%
  • FirstService Corp (FSV.TO) Loss = -11%
  • (Partial sale) Kirkland Lake Gold (KL.TO) Gain = +252.3%
    • Also wrote covered call options on KL.TO expiring next month. If they get called, I am happy to unload them..else will continue holding. Details here.
  • Toronto-Dominion (TD.TO) Gain = +2.8%
  • (Partial sale) Vanguard Total Bond Market Index ETF (BND) Gain = +11.1%
I am not worried about trying to catch the exact bottom of this market freefall. Tops and bottoms are processes and not single events. They will take time to play out. For now, I am happy to sit on cash and wait for the chips to fall where they will.
After these sales, I am now sitting on 52% in cash, with a heavy tilt towards gold and utilities. Bonds make approx 10% of our overall portfolio.
Full Disclosure: Our full list of holdings is available here.


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