Our portfolio updates for the week ending on November 1, 2024 are as follows.
Taking Profits and Adjusting Position Sizes
If you aren’t familiar with how I invest yet, you need to know a couple things.
I have a rule about letting a single holding become more than 5-6% of my portfolio. This tactic is a major risk mitigation strategy and has proved over time to be a good one.
There’s also nothing worse than watching profits drop with price declines. That’s why I hyper focus on stock valuations.
It may seem counter intuitive because of popular sentiment, but you’ll be ahead when others start jumping ship. This is a bit of an art and relies on company metrics. Sometimes companies do have more room to run.
Pimco Bond Fund
Last week we put in a limit order to sell all of our shares of PDI at $20.30. It’s still hasn’t hit it, so I’m rehashing things now.
This bond fund has given us amazing returns — about 40% to date.
I really like PDI because it’s a lot easier than finding individual bonds. We’ll definitely get back into this one when the price is discounted.
Arbor Realty
Turning the DRIP off in ABR wasn’t enough to prevent it from becoming too much of our portfolio with its recent price surge. So, we put in a limit order to sell some shares at $15.65.
I love ABR and will continue to hold it long term. But right now, it’s better to stick to our rules and prune this stock to a better position size better.
Capital South West
We put in a limit order to sell all of our shares of CSWC at $26.05. This has been a very good investment for us.
It’s produced a 35% total return, but recently has had a few downgrades and some insider selling, as well as institutional selling. Those are signs of weakening, and I’d rather take profits than ride this one down.
Trinity Capital
We have a limit order in to sell some shares of TRIN at $14.10 to reduce our holdings. Just like ABR, I also love TRIN, but it’s become too big of a position in our portfolio and we need to rebalance.
Who knows when these limits will sell, but they’re in place at prices that should be reached in the near future.
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