Tuesday, August 9, 2016

Sold Macy's and added to my 2 shares of TIF

Going to keep this reasonably short. I still think Macy's is a solid company despite the struggles in the consumer sector. But thought long and hard as to why I bought into it in the first place and it was largely the valuation. Yesterday I was able to bank an 11.46% return in less than a week.  I decided to put the money from this sale and add to my stake in Tiffany and Co.

The rationale was simple. Tiffany had a longer track record of dividend growth, a solid dividend and should be around for years to come. The valuation is great. It is a Morning Star Wide MOAT. Also I realized that I was using the free trading in Robinhood to spread myself a little thin. I don't own $300 in anything and was spread across 14 stocks. I do want to diversify, but right now am looking to increase my stake in the dividend growth stocks I already own.

I sold Macy's yesterday and wanted to sleep on my next buy. My plan this morning was to buy one share of TIF and then either a share of Wells Fargo or another share of TIF. I bought the first share of TIF for 63.44 and then decided to go for another share of TIF at 63.31. I still like WFC and may buy later in the month. But I already own two shares of Bank of America and a share or Lazard. I felt like I banking was already a significant part of my portfolio.

2 comments:

  1. Overall, a good foundation. I would suggest not to be too concerned with position size IF you want to own the company long term (tends to be tax advantageous avoiding short term holds).

    The knock on TIF is the strong dollar. Conversely, M is growing their online presence and has real estate assets - should they ever choose to monetize them (REIT).

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    1. Thank you for the feedback drog98. I'm still very much a novice at this. I've been reading a lot and following others. I agree with you about the short term holds. I think part of the decision to sell Macy's was a lack of confidence in myself. I was a little quick to pull the trigger and was influenced by reading negative information. I am trying to consolidate now around companies I plan to hold for a while. Thanks again for the comment.

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