Hey all. I made a stock swap a few weeks ago, but life’s been getting in the way of me writing it up. I had my wisdom teeth extracted very recently, and combining that with some other personal stuff means I haven’t really focused on the blog all that much … at all. Y’all will have to forgive me for (a) posting this a couple weeks late and (b) keeping this nice and short.
I sold:
- All my shares in Precision Castparts Corp (PCP) @ $230.87 (-$0.36 in annual income)
- I really didn’t want to sell, since I loved this company. But Berkshire Hathaway just bought it out for $235 a share. I figured that (a) I wouldn’t lose much in either dividend income or capital appreciation if I sold now versus when the deal closes, and (b) I already indirectly own the company because I own BRK.B. So either I own the full company indirectly, or the deal collapses for some reason and I can buy PCP back at a lower price. Win-win, innit?
- All my shares of California Resources Corp (CRC) @ $3.91 (-$1.32 in annual income)
- Another spinoff, another waste of capital. Glad it’s gone.
I bought:
- 12 shares of Wells Fargo & Co (WFC) @ $57.06 (+$18.00 in annual income)
- I’ve had my eye on haven’t added to it in over a year. It’s as good a time to add as any, especially since it already hit my shortlist for purchase again recently.
- 2 shares of VTI, the Vanguard Total Stock Market Index ETF
- Because LOL.
So although I was basically forced to sell one of my favorite companies, I feel vindicated that (a) I was proven right in my original assessment and (b) it’ll be in good hands under Berkshire. And I boosted my income overall as well. Good times.
Disclosure: Long BRK.B, VTI, WFC
10 Comments
Always bittersweet to sell a favorite company, but congrats on the win. Hope you are recovering quickly from the wisdom teeth procedure – perhaps some extra milkshake consumption can help our positions in MCD
Best,
Brian
Yep yep, “bittersweet” is the perfect way to describe it. Ha, def couldn’t hurt!
I was highly considering pulling the trigger at wells fargo this morning when it opened at $49. Im holding out tho because it looks like everything is in free fall
Probably a smart move. Or maybe just DCA in as things keep falling. Who knows when it’ll reverse?
I have a ton of WFC, it’s one of the highest earner for me to hold on the long term basis. It’s one of the most profitable banks out there. Great buys!!
I love it too! Hoping to bring it up to the same size as my JPM stake in time.
I think you made a good move.
Although I don’t like financial stocks…
To each their own
Great buys DD!
Nice swaps, as the others did not pay much dividend at all.
Keep it up, you are doing a great job out there.
Best wishes, DfS
Thanks!