Spring clean of the ol' portfolio

Cleaned out some stocks on the portfolio to cement some paper losses - never good, but as the saying goes - treat your stocks like staff - get rid of the bad ones and keep the good ones.

Its very easy to do the opposite and hold crap stocks while selling ones with gains - and often these go to gain more and the crap ones loose more, and hang in your portfolio for years.

Also that capital in the crap ones - its good to get it working again - the longer you hold them the more opportunity cost.

I decided to have a cull out while the market is trading high, get some cash and possibly re-invest (interest rates look like they wont move much now so bank returns will be average)

Most of the stocks were more specys and only a very small portion of my portfolio - but im learning the hard way and I will stop speculating, as warren says number 1 is not to loose money.

Its an easy mistake to buy a specy and then do well out of it and think your on to something - really it was most likely a fluke and then you try some more specys and you loose twice as much as you made on the fluke. Better to buy specys once they are profitable - loose some of the early gains but get the rest of them if they make it.

Feels good to tidy things up, and wth every mistake there is a good education on what not to do.

sold
GTK - burnt post ipo - down approx 15%
HDX - downtrend, mining, poor margins, revenue guidance missed, down approx 45%
SKO - got caught up in the hype down approx 15%
TPT - high risk high reward - new it/accepted it - doubled my $1000 investment before it turned into $60 down approx 100%
TSI - up to f all, only small investment - sick of it down approx 35%

would like to know others thoughts on when and how they tidy things up in their portfolio!

also everyone talks up their good picks but why not talk about the horrible ones - since everyone makes mistakes.

On a happier note for me,
For the first time in quite a while I will have to sell down for the opposite reason,
I am just a little hesitant to move but CSL, the first company for quite some
time to do so has risen above the percentage value our Family Trust can hold,
and I see it's up a bit more today.
For the long term holders it's shown IRR of 22.54% over more than 10 years
with a majority bought in 2004 @NZ$18.00, had a 3 for 1 split since then,
so its been very profitable
would be nice to own some more companies like this.
I will only be selling the minimum I have to.

I just turf'd MEO, QTG and a few months ago AGO.

Should have sold them all long ago when I was in the green. All >50% loss which is a shocker!

Quote:

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Originally Posted by Corporate

I just turf'd MEO, QTG and a few months ago AGO.

Should have sold them all long ago when I was in the green. All >50% loss which is a shocker!

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Well oldrider - a nice situation to be in, how much of one share can you hold percentage wise - I would be interested in how you set up your portfolio?. CSL has been a great investment.

KW - thanks for your words of wisdom - always much appreciated.

Corp - yes I held qtg too after steve flemming posted about it, again management talked it up and then didn't deliver, I sold out for a profit luckily.

also - something I have been caught out on, not that I trade is that for example tpt I got 100% gain but didn't have my statement with the srn/Hin number so couldn't sell and then it went into trading halt. Is there any way you can get it/sell asx shares without it?

Quote:

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Originally Posted by NZSilver

Cleaned out some stocks on the portfolio to cement some paper losses - never good, but as the saying goes - treat your stocks like staff - get rid of the bad ones and keep the good ones.

Its very easy to do the opposite and hold crap stocks while selling ones with gains - and often these go to gain more and the crap ones loose more, and hang in your portfolio for years.

Also that capital in the crap ones - its good to get it working again - the longer you hold them the more opportunity cost.

I decided to have a cull out while the market is trading high, get some cash and possibly re-invest (interest rates look like they wont move much now so bank returns will be average)

Most of the stocks were more specys and only a very small portion of my portfolio - but im learning the hard way and I will stop speculating, as warren says number 1 is not to loose money.

Its an easy mistake to buy a specy and then do well out of it and think your on to something - really it was most likely a fluke and then you try some more specys and you loose twice as much as you made on the fluke. Better to buy specys once they are profitable - loose some of the early gains but get the rest of them if they make it.

Feels good to tidy things up, and wth every mistake there is a good education on what not to do.

sold
GTK - burnt post ipo - down approx 15%
HDX - downtrend, mining, poor margins, revenue guidance missed, down approx 45%
SKO - got caught up in the hype down approx 15%
TPT - high risk high reward - new it/accepted it - doubled my $1000 investment before it turned into $60 down approx 100%
TSI - up to f all, only small investment - sick of it down approx 35%

would like to know others thoughts on when and how they tidy things up in their portfolio!

also everyone talks up their good picks but why not talk about the horrible ones - since everyone makes mistakes.

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I only follow GTK and SKO in that lot and disagree about your decision to sell. Of course its personal preference but I think both of those companies will do well in the future. I have only really sold 1 stock at a loss in the past 4 years as I am careful before investing. Of course some of my investments go down but that doesnt mean I will sell them as I still believe in the companies. Its only a loss if you sell.

NZ Silver
Our set maximum is 5% of portfolio value in any single share, including LIC's or ETF's
In portfolio set up:
1 Geographically NZ-Aust-International
2 International into Asia-US-Europe-Emerging etc
3 Selection by Industry
3 Selecion by individual company, LIC or ETF.

For NZ - only individual comapanies
For Aust - mix of companies & LIC'S
For International - LIC's and ETF's only

I am not suggesting these ways for any other. It is just what we do. You decide for yourself
and your circumstances, you can probably figure out I am no longer a young person, as well
we have four trustees sharing the work which in truth is not too onerous. We use share sight to monitor

I've dumped three shares in the last year: BRL (40% loss, -got that completely wrong!, but would have been more than 90% loss if still held); DIL and NPX (small profits on both, happy not to hold NPX but looking again at DIL).

Hi all - thanks for all the great info.

Yes I agree Schrodinger SKO and GTK have good prospects, however i got very small parcels however I thought it was better to take the loss consolidate the cash and place in other companies. However GTK's profit warning not long after the IPO, how they didnt have any idea prior.....I question this....

Could someone give me a quick education on LIC's and ETF's

benefits and reason for, how they use them and negatives.

Thanks in advance.