Missing Colgate - Did I Rush the Trade?

Late on Thursday, I was having a bit of seller's remorse. Earlier Thursday I parted company with my shares of Colgate (CL) because of a slight miss on revenue while earnings exceeded expectations in the latest report.

I think I got a bit 'self conscious' of the public nature of my blogging and trading and probably rushed that trade. Over and over we have seen stocks pummeled on announcements that really aren't bad. The market wants to sell on good news and sell more on bad. It is probably best not to respond to these actions after earnings announcements and instead concentrate on breathing slowly, relaxing, and letting the chaos pass as it always do.

I certainly like Coca-Cola (KO), but Colgate-Palmolive is truly a phenomenal world company. I blinked when looking into the face of the irrational sell-off. Like a 'weak sister' as investors like myself are called I dumped my shares grabbing my small gain and moved into Coke. Not exactly the cool-headed investor I pride myself in being.

Perhaps that is what separates an amateur investor like myself from a professional. Perhaps knowing this is the first step on that road. We can certainly hope.

As I write over and over, it is important to have specified sale points for both good and bad price moves. It is also important to identify significant fundamental negative reports that might trigger a premature sale. However, this kind of volatility is not a game I should be playing or even get caught up in. I hope all of you can learn from my own actions as well.

In any case, tomorrow is certainly another day, and I still have a portfolio of mighty fine companies. I just miss my Colgate already and will be sure to keep it on my list of stocks to revisit in the future.

Disclosure: long KO, no positions in CL

Comments

[stink726:]

Nothing wrong in taking a profit. I do believe you should have held onto CL, but KO seems a pretty good swap. Unless Congress passes a "sugar tax/fat tax" which might cause KO to drop in the short term. A couple of times I have regretted selling a stock for a profit, then turned around and rebought it a few days later.

Jul 31 02:34 PM

[Robert Free...:]

Thanks for commenting. Seller's remorse is a serious emotional problem for me. Fortunately, I like Coca-Cola almost as much as I like Colgate. I don't think a few cents of tax on sugared drinks will make much of a dent in the majors like Pepsi and Coke. So many of their sodas are now "Zero" sodas with no calories anyhow.


On Jul 31 02:34 PM stink726 wrote:

> Nothing wrong in taking a profit. I do believe you should have held
> onto CL, but KO seems a pretty good swap. Unless Congress passes
> a "sugar tax/fat tax" which might cause KO to drop in the short term.
> A couple of times I have regretted selling a stock for a profit,
> then turned around and rebought it a few days later.

Sep 24 03:24 PM