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mikenpdx (20.32)

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July 05, 2013 – Comments (0)

this is post is part of my resolution this year to force myself to post about my buys/sells for the next 12 months. mainly for me but feel free to comment. 

i got to this point because i was overconfident in what i thought i could do.  I got caught up in making short term plays to try and pump up this account so I had more money to build out my longer term holdings.  not Foolish, and i should have known better.  by forcing myself to post what actions I am taking, I will hopefully avoid last years pitfall.

for context, i don't expect to have any new money coming in for another year or more and this is a retirement account so there are no tax consequences for selling.

 

I am selling my trading position in PCLN today at $841/share.  

Nothing to do with PCLNs future prospects, in fact I continue to think it will be one of my top performers.  And even after this sell it is still my #3 position overall at about 7%.  The positions I am continuing to hold are 3.5 baggers.   

I had bought this trading position in Aug last year @ $669, during a pullback that appeared to me to be due to nothing but seasonality.  I held a bit longer than I had planned as I had originally only planned to hold for a quarter or two and capture a 10% or so gain once the stock got back to $750 which I surmised would happen rather shortly.  I had other companies on my watchlist I wanted to buy but thought in the meantime I could put some cash to work here and take advantage of mr markets irrationality or short sightedness on one of my top/favorite holdings.

It took a bit longer to get back to 750 than I anticipated and, interestingly, the first time we crossed over $800 I decided to continue to hold.  I wrestled with the idea of just allowing the trading position to become a part of my permanent holding because PCLN is in such a strong position.  

Ultimately, I decided that because I have no money coming in right now and there are no tax consequences, and I hadn't intended for PCLN to be this large a percentage of my portfolio and there are other exciting companies I want a piece of now, I would sell the trading position per my original thinking.  I captured a 26% gain in a little less than 11 months.

I have considered the question of if I can really do better with the next company(s) I buy than just leaving it with PCLN.  I'm not sure.  But there are stories and companies I am following that are in the early stages of what I think are immense potential and I want a piece of them.

At some point in the future, I will see how I am doing compared to how I would have done if I had just stood pat this year and not made any changes.  I suppose I could look either really smart, or else perhaps there will be a lesson to be learned...

time will tell... 

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