What Did You Buy Today?

[fenders53]

(03-13-2020, 11:12 AM)pdaignau Wrote:

(03-13-2020, 10:08 AM)fenders53 Wrote: Too many long term values to choose from now.  I think I will spend the day doing a little risk management on my port.  The threat of dividends cuts looms even with the oil majors.  I think I will sell some of my BP and spread some of it  around to RDS.B, and my ETF BGR which owns all the majors.  At this point the only reason I own oil is the dividend so I'll spread my all in on BP risk around a bit.  I'd be sad if I lost all my BP divs as it is a full position.

Yeah, I've been thinking about selling some "Good" stock and using the money to buy "Great" stock.  This down turn has me asking myself, "Are you willing to hold this stock if it drops another 20%?"  Or, phrased more comically, if your ship sinks what do you want to go down with?

Fortunately I had some cash saved up.  Nothing looked reasonably priced starting around Nov/Dec. 2019.

Affectionately known as "re-arranging deck chairs on the Titanic".    Make your moves thoughtfully in a stressful time and you are usually at least a little better off than you were.  Try not to trade your junk for new junk that just hasn't dropped as much yet.  I've done this most every correction or bear market for many years.  Things change when at least a short recession looms.  I am usually trying to accomplish one or more of the following.

1. Lighten up in an industry I no longer believe in, or at least diversify within the industry if I only own stock. 
2. Secure a safer dividend, and sometimes a higher yield comes with it.
3. Stop being delusional and believing I'll get back to even if I'm just patient.  The paper money is already gone.  If I can flip to a stock that is highly likely to give me half my money back soon, that's a big win.  It beats watching your junk stock languish for years, drift down and the dividend is in danger.  I've done that many times and it rarely works out. Flight to quality usually does work out.

I will move some of my big oil money around, but not all of it.  I clearly made a mistake.  There is some small chance I get half my money back and the Divs don't get cut.  That's not good enough for a full position.  I can reduce my risk and increase my chance of success when the market is crashed.  

Let us know what moves you make if any.