Our portfolio updates for the week ending on October 11, 2024 are as follows.
Active Allocation Rebalancing
Turned DRIP Off
Due to position size being too big, we have turned the DRIP off on ABR, HTGC, and QRTEP for now.
I find it better to turn DRIP off versus selling if you’re in a taxable account. This avoids capital gains. It’s easy to be proactive when you monitor your portfolio as much as I do.
This has nothing to do with the price or performance of these investments. I still really like them, but they have become more than 5% each of my total portfolio and had to be trimmed.
It’s just that I learned my lesson with allocation the hard way with IEP and have since created a rule.
No one stock should be more than 5-6% of our portfolio
Everything was fine and dandy with IEP until some bad news hit. Because of investor fear, it kept going down. We rode it down from around $55 to the $10 range.
And only recently was the bad news announced to be unfounded, but it hasn’t rebounded dramatically. We did sell off portions along the way, but are still in the red.
This happened because our portfolio was extremely over allocated in one stock and when bad news hit, it’s price dropped and our portfolio value went plummeting with it.
Sold Some HTGC
When the DRIP is off and you’re still overallocated, the other options is to sell off some shares.
We put in a sell limit order of $20.41 in on 49 shares of HTGC. That will bring our 6.5% position size down to under 5% whenever it sells.
Tesla Sentiment Catalyst
Bought TSLY
In anticipation of TSLA being crazy volatile after the robotaxi event this week, we initiated a position in TSLY again.
This is the YieldMax ETF that trades options on TSLA. These make a lot of money in times of high volatility. We only bought a few shares (23 to be exact), but I plan to add more a little at a time in the next few months.
I know we said previously that TSLY wasn’t a good one to put your money in. That was true when the price was higher, but it’s now down around $11 and this event changes things.
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