I’m out. Turkey’s meltdown convinced me that I shouldn’t venture into things I don’t understand – like cigar butt international indexes.
Also dumping Poland and Israel. Israel has a close trading relationship with Turkey. I want minimal exposure to Europe, as the crisis looks likely to spread. I will probably sell Norway next month when I do the rebalance. I am also ditching Brazil. This will give me enough cash to buy at least 2 positions.
I know, I know. The US is overvalued. Home country bias. But, at least with a US company, I can wrap my head around it and hold through a tough time.
EPOL @ $23.1752
TUR @ $19.3653
EIS @ $53.5101
EWZ @ $33.7746
I’m going to replace it with actual companies that I understand.
I was paid out for my lone share of Pendrell @ $689.19, which I bought in December because it was trading at net cash. This isn’t a “trade” as much as it is a portfolio event. There was a reverse stock split and tiny shareholders like me were paid out in cash.
This brings my cash balance up to $1,093.81. I am not sure how I am going to deploy it. I may rebalance my country indexes around 9/30 (they were mostly purchased in October 2017) and include this cash in the new positions that I purchase with those proceeds instead of buying something right now. I’ll also have owned Foot Locker for a year on 9/25 (a position that has been very good to me) and may sell that.
This would get me on a cycle of quarterly activity with a big rebalance in December (the blog started in December 2016, when I purchased the original 20 positions). My intention is to hold positions for at least a year unless they increase significantly or the fundamentals deteriorate.
I’m itching to sell Turkey. I clearly made a mistake with that one and should probably adhere to stricter quality criteria for international indexes.
I am a value investor. My outlook is inspired by the ideas of Benjamin Graham. This site is a real time chronicle of my portfolio and an outlet to share my ideas. I hope you enjoy.
