Key lesson learned - Discipline & Patience
One of my best gainers in 2023 is INTC. Built a very nice oversized position. 8 Buys in 2022 (Aug, Sept, Oct) and 11 Buys in 2023 (Jan, Feb, March, April, May, June & Oct). My avg cost is at/near $28/share w/ buys from $25/share to $33/share)
GTN another good 2023 gainer. I sold 75% of my position at price between $10/share & $8/share. Avg cost at $6.80/share. A deep value still but a hard one to hold as price changes significantly w/ little to no news.
ORCL another Tech stock I built an oversize position in 2022 w/ 17 Buys during the year (Jan 8 Buys, Feb 2 Buys, March 1 Buy, April 1 Buy, May 1 Buy, June 2 Buys, July 1 Buy, Oct 1 Buy). Also 1 Buy March 2023. Avg cost $78/share. So far +36% in 24 months. No plans to sell
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You can see I am typically always adding to the position over months & years. I may sell some high cost shares but always buying more shares if/when I feel it comes back into my value zone. I like to keep ALL of the gains inside the portfolio. This strategy allows me to average into my price and in some cases reduce my avg cost per share.
I still probably own too many different position as well as a few different mutual funds (Vanguard Dividend appreciation Fund, their Real Estate fund, The $SPX fund, Treasury Money Fund and sold out my Emerging Markets Fund). Last count 110 positions when looking at all accounts (including IRA & ROTH).
This is over 40 years investing. I usually never close out a position but keep a small tracking position unless I feel the company is no longer worth holding/watching.
Some positions I have owned over 25 years like SRE, CVX and others.
Even my home in Silicon Valley I have owned now 43 years. Still holding a lot of cash in the Treasury Fund almost 30% as I am planning a real estate project and/or was interesting in buying farm land. It might just be easier to deploy into specific REITs and or Special Situation investments.
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The big takeaway is be diversified, patient & do not try to hit home runs but rather make several small bets over time (months & years).
FWIW, my biggest gainer (not yet cashed in) was in 2011 a Duplex which I use 1/2 of the year w/ no debt and did several improvements. It really was not bought to make money but for the life style it provided. Current value is +475% over the 12 years I have owned it. No plans to ever sell.
Have Happy Holidays and a Profitable & Healthy New Year! |
