I posted this as a comment on my most recent article, but I want to begin posting portfolio decisions via the Instablog, so I'm repeating the comment here:
During this week's market tumult, I've tried to engage in some strategic thinking. I have been thinking about some of the good points raised by PaulC. From prior conversations, I'm aware that Paul is very focused on capital preservation, a noble pursuit (particularly this week), and he has been frustrated that I have opened positions and later (sometimes rather quickly) sold some or all of the position, particularly when I've sold at a loss. I understand that frustration. I hope no one will purchase any equity based on my recommendation. The last six words of each article are extremely important: "Please do your own due diligence."
Still, I realize there are many people who "follow" me. I like "friend" better than "follower," but we live in a Twitterized world of followers, so I am at peace with that reality. In light of the legitimate concerns raised by PaulC, and out of respect to my friends/followers, one of my 2016 decisions is to post (either in this fashion or via a SA blog post), buy and sell decisions shortly after they occur. One of my goals for 2016 was to execute fewer trades than 2015. I'm confident I will be able to do that. During the first four trading days, I took no action. I'm trying to think more and trade less. Today's little rally has given me an opportunity to sell a few shares of some holdings, with these portfolio percentage changes: Sold some NNN @ $39.59, reducing the percentage from 2.7% to 2.0%.
Sold some O @ $51.70, reducing the percentage from 3.3% to 2.8%.
Sold some MSFT @ $52.65, reducing the percentage from 4.9% to 4.4%.
Sold some units of EVA, @ $17.88, reducing the percentage from 2.5% to 1.2%. I opened a starter position in TXN @ $51.17, so it is now 1.0% of the portfolio. These actions are part of a strategic decision to expand the portfolio to 30 stocks over the course of 2016. Thus, I have tweaked the target percentages of the portfolio. I don't see any need to rush this. I think better bargains are ahead, but I want to be ready: 5 stocks @ 5.2% each
5 stocks @ 4.4% each (MSFT is now in this group of five)
5 stocks @ 3.6% each (I plan to grow TXN to this percentage of the portfolio)
5 stocks @ 2.8% each (O is now in this group of five)
5 stocks @ 2.0% each (NNN is now in this group of five)
5 stocks @ 1.2% each. (EVA is now in this group of five). As a result of this morning's transactions, the cash percentage of the portfolio has been raised from 4.0% to 6.1%