10-09-2016, 07:43 AM
Wouldn't it be nice to always have this problem?
So I guess I could subtitle this to "When do you sell?"
I/we are currently 3-5 years from mandatory airline retirement and for all practical purposes we have our portfolio humming along 70%/30% with a 3.2% steady stream of income form dividends and interest.
Several of our consumer staple stocks are considerably overvalued. I consider this sector a foundation for the portfolio and unless the company tanks see no reason to liquidate.
That said I want to share a different perspective.
We have a small position in Colgate with a 35% profit. It yields $120/year in dividends.
If I sold our position I would pocket over 10 years worth of dividends (less $7.95 charge).
Eventually I would expect CL to come back down to a normal valuation at which time I would re-purchase it. Of course, unless I could earn the current 2.1% or better somewhere else those 10 years of equivalent dividends might turn out to be only 9, 8, 7 years or less.
As we all tend to be "buy and hold" types, I am curious what the DGI brain trust thinks of this.
https://www.fastgraphs.net/
So I guess I could subtitle this to "When do you sell?"
I/we are currently 3-5 years from mandatory airline retirement and for all practical purposes we have our portfolio humming along 70%/30% with a 3.2% steady stream of income form dividends and interest.
Several of our consumer staple stocks are considerably overvalued. I consider this sector a foundation for the portfolio and unless the company tanks see no reason to liquidate.
That said I want to share a different perspective.
We have a small position in Colgate with a 35% profit. It yields $120/year in dividends.
If I sold our position I would pocket over 10 years worth of dividends (less $7.95 charge).
Eventually I would expect CL to come back down to a normal valuation at which time I would re-purchase it. Of course, unless I could earn the current 2.1% or better somewhere else those 10 years of equivalent dividends might turn out to be only 9, 8, 7 years or less.
As we all tend to be "buy and hold" types, I am curious what the DGI brain trust thinks of this.
https://www.fastgraphs.net/
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
Frederick Buechner