In early January I did exactly what you suggested about creating a year ending portfolio. I sold about 70% of my QCOM in January and re-deployed it into other G&K stocks and also increased my Cree holdings.
The results are somewhat mixed because I was still buying in early March but my "new" G&K portfolio is up 10% YTD and my "Old" G&K (substantially over weighted QCOM) is down 20%.
However, It will be very interestng to see what happens a year or more from now, if the Q bounces big. In April or May, Mike and Bruce were talking about their holding periods and trade frequency. Based upon that conversation I resolved that I was going to stand pat with my 7 Stock (5 G&K's and 2 W&W) holdings. I have also been sitting on a chunk of cash (~15%) and resisting the temptation to buy stuff. ( When your wife keeps asking you if you still have all that cash and reaffirming her desire to keep it that way, it makes it easier)
I have found that watching the price action frequently sorely tempts you to "don't just sit there, do something."
But, I am resolved to just hold on until this period of uncertainty is over.
I found the G&K thread last July. I read the books and began to understand some of the foolish mistakes I made. Of course, like most novices, I have made a few of them since that time, but I am learning. I first bought INTC, CSCO and EMC in early 94 and made a nice chuck of change on all of them, but I missed the real money by initially trading out of them in 96 & 97.
In retrospect had I kept those position for the last 4 years, i would be deciding whether or not I chose to continue to work instead of continuing to work for wages.
Stockhawk, I think your advice to freeus was right on the mark. Anyway, if anybody cares or is still reading I thank the G&K All Stars for helping me understand an investing philosophy, sharing so generously of their knowledge about these companies and being a wonderful support group when doubt and uncertainty could easily rule supreme.
Sunny |
