Recently, I sold my 85 share stake in Century Aluminum for a price of $8.21 per share. I bought the stock last August for $5.81 per share. So I ended up netting a very nice 39% profit.
I recently wrote an article on Century Aluminum after it had endured a major slump in share price. The article focused on whether or not the company was still a buy. I thought it was, and thankfully, my faith paid off.
I don't want to write this article to brag. After all, it's just one investment. But I do want to mention the two most important things I learned while I held the stock.
First, I learned that any portfolio needs to be constantly looked at and reassessed. This is what I attempted to do with my article, and it's something I had thought about before but had never considered doing myself. I was put in the position of constantly having to reassess my position in the stock to make sure I was making the right decision. This exercise ended up being humbling and thought-provoking.
Second, I realized how important it was to have a price target and to not get too greedy. I had the opportunity to sell my shares at a 50% profit a few months ago, but held out thinking I could get more although a 50% return was greater than my expectations. It's important that investors have targets and goals in mind. I think that, moving forward, this is what I'll have to focus on more. I need to be more disciplined in assigning a value to a company and with getting out when I'm happy with the results.
Overall, investing in Century Aluminum ended up being a very profitable experience for me - and not just economically.