Recent Buy & Sale

Today I made some changes to my portfolio. I sold all my shares of Nike Inc (NKE), and used that money to buy HCP Inc. (HCP). After that I bough small amount of Prospect Capital Corporation (PSEC).

For more información visit: http://www.prospectstreet.com/  or  http://www.hcpi.com/

Total shares purchased:

• 45 shares of HCP valued around $1900
• 100 PSEC valued around $850

My Nike shares had gone up quite a lot in the past year. And I decided it is time to take some profits out. Even if I think that Nike is a great company and can produce good results for years to come. The lack of decent dividend (currently 1.12% yield) made me choose this way. Well there is growth.. but I made my self asking that how long can it continue? and how much? and what about competition? That's a lot of questions.. and no one rely knows the answer to those. Basically my Nike shares has produced me around 45% dividend in USD and around 80% dividend in EUR. (currency changes). Like Jim Cramer says:" No one is going to get hurt when you take your profits out".

I think HCP is a good company and has a good track record to back that up. 30 years of increasing dividends making it a Dividend Champion, that's has to mean something.

PSEC for me is just a wild card. I'm hoping it can bring me those monthly dividends many years to come. So no big expectations here.

I still have some money left on my brokerage account, and I may just let it sit there until I get my next paycheck. So I can make a bit bigger buy on next month.

These purchases increases my annual dividend income by: $196.80

HCP Inc  $100.8
PSEC $96.0

On other news on my portfolio:

I'm also considering selling UPM-Kymmenen (UPM1V) but I decided to wait a bit and read some annual reports first and do some serious thinking. If you got some superb inside info let' me know and toss a comment!

I'm also considering selling ARCP. Since there is now dividend anywhere to be seen. But I think i'm just going to wait until the next quarterly report. And decide after that.

I will soon update my portfolio to represent these changes.
Have a Nice day!
cheers.



photo: http://freedigitalphotos.com/ By cuteimage 

Recent Sale

I spend around 5 hours on last Sunday to rethink my positions in different companies. What comes to investing or portfolio management, for me it means Risk Management. Managing your risk, by allocating and diversifying your portfolio, it is one of the main thing what comes to investing that everyone should do. This of course varies by what kinda of investing tactic or strategy you choose. There are many different tactics and strategies what comes to investing and I cant list them all, because I don't know or understand even half of them, for me it is enough to understand the principal of trading and dividend compound investing.

 So I had around $7000 invested in different companies that i consider to be "growth" companies. For me that was way too much compared to my portfolio size (around $32,000). So I ended up to close some of my positions and move that money towards safer dividend investing and that way to reduce my overall risk. I'll list these companies below with some information why I did sell them and so on.


First I closed my position of Starbucks (SBUX) This company did not produce anything for me, it have been trading close to flat around a year for now, I did get some dividends from it but because of my low $ position it was not ideal to keep. I did get pretty much same amount that I went in with, if you calculate the dividends.

Second I sold my position on Coloplast A/S (COLO-B) this trade was more like i was looking for, my shares gained around 15% increase in around 1 year period, did make a few bucks there. Overall i think it is a good company but lower dividend, high P/E got me turned away, also I may buy into similar company and I don't want to keep two positions in this sector.

Third was Novo Nordlisk A/S (NOVO-B) Recently Novo Nordlisk gained a big upscale because few of  its drugs got passed in EU, so shares soared quite a bit, so i decided this would be a good place to exit, Novo also gives a small dividend yield around 1.16% with current price, that is too low for me. I think the company will go higher but because of my small position it would not give me so huge boost, and i felt the risk could be higher moving on. I decided that its better to choose steady dividend income, than a change that it may go higher. I gained around 45% increase for my original investment plus one dividend.

Fourth was China Ming Yang Wind Power Group LTD (MY) This was one of my riskiest investments, but it did pay off. Need to make some calculations but i made around 70% profit on this one so it was rely good for me, now i don't expect to see these kind of numbers everyday. I got lucky, I read the right pages at the right time and made my move, nothing else.

Fifth was Yahoo! (YHOO) this sucked, I made my investment last week and I was counting on increase because of the Alibaba IPO, and i was wrong.. it happens. This is one of those things you can learn from and grow as an investor. I did what i learned from one video I saw on the net. One of the big hedge fund managers who had make millions of dollars on their career, he sad something like this:" if you take a position and it will go wrong way what you were counting on, you just need to fuc**ng sell it and not stay on it and risk loosing more money. You need to suck it up and take your losses and move on" And that's what i'm doing.

Overall i'm looking good positive numbers on these trades, now i have a bunch of cash that can be invested in new companies. I will updated my portfolio when i have more time in my hand.


Any thoughts ? Did i make right choice? 



picture: http://freedigitalphotos.net/ By Stuart Miles