Recent Sell

Recently I’ve done a lot of thinking about utilizing a sell strategy to optimize ones investment account.   In this post I attempted to get some feedback from you guys on when it is a good time to sell.  There were a lot of insightful comments and  I appreciate you guys sharing your thoughts with me.  The following sell does not represent any of the reasons we discussed in the comment section.   I made this sell for one simple reason:  free up cash for an upcoming real estate purchase.  There was nothing wrong with the company nor was I attempting to use the funds to purchase other stocks (altough I had been thinking about it).  Just moving funds from one type of investment to another.

SOLD: AT&T

I purchased AT&T in two lots:

  • 200 shares @28.47 in March of 2011
  • 100 shares @ 29.89 in July of 2011

Total funds used for purchase: 8683.00

On Wednesday I sold 300 shares at 38.25 for a total of  11475.00.  Add to this dividends of 697.00 and I received a total return from AT&T of 12172.00 or 28.67%  40.18% This is a gross return.  I have not included trading fees or taxes.  As I mentioned before, the only reason I sold AT&T was to free funds for another investment.  I’ve been happy with T and will most likely add it back to my portfolio, but not at todays levels.  It will take another dip before I would buy again.

Wish there was more I could tell you guys about my decision to sell.  It’s cut and dry.  Let’s hope that I can get as good a return off the real estate as I have AT&T.  I see a lot of future posts coming from the real estate investment.  Wish me luck.

Advertisements

16 thoughts on “Recent Sell

    • AverageCFA,
      I’ve been thinking of real estate as an additional means of achieving my financial goals for several years. Now don’t get me wrong, I’m not saying I think real estae is a better form of investing. I see no reason not to do both if you can make a case for it. Before the Fall (divorce) I breifly rented a home I had prior to marriage. My dad owns on rental property and I’ve been picking his brain for several weeks now. I’ve done a lot of research on real estate investing and property management over the years. I think I’m ready… maybe.

      Now for the deal itself. I’m looking at older homes that have been converted to a quadraplex. I will be living in one of the units and rent the other three out. The properties I’m lookng at are forclosures and in need of rehab. It will be a cash deal, hence the need for liquidating some of my stocks positions. I initially only planned to sell AT&T, but after inspecting a few other properties today and finding one I think will be a better investment, I may liquidate a few more. I’m not abandoning my dividend portfolio. I just want to make that clear. This is a move I believe will supplement my dividend portfolio as well as assist in achieving my long-term finanical goals.

  1. Stoic,

    Cool stuff! Real estate can be a fantastic tool to building wealth if used properly.

    I’ve considered buying a duplex a couple times in the past and living on one side, while renting out the other side. I think the main reason I don’t own any rental property yet is because I’m just completely hapless when it comes to anything handy. I mean, I’m ridiculously un-handy. It’s laughable. From what I understand, to make something like that truly profitable you’d have to be interested in doing some of the basic stuff yourself. Hiring and subletting everything out can get expensive. And so I continue to rent.

    Keep us updated. Definitely interested in how this goes.

    Best wishes!

    • DM,

      I think adding real estate to an investment portfolio can be profitable if you approach it correctly. I’ve been running the numbers on the quadraplex much like I would a potential stock. If the numbers don’t work I have no problem walking.

      I’m in the same boat as you when it comes to being “un-handy”. It’s just not my thing, never has been. Luckily I have some family/friends who are and if I run into a project that I get stuck on I have someone I can turn to. As you said, hiring a contractor to repair or improve minor things will eat into profit very quickly. It is a steep learning curve, but I’m willing to tackle it.

      I know you visit the ERE forums. Have you looked at MikeBos’s blog http://www.lackingambition.com? His work with real estate has been really impressive.

      If things work out I should be making an offer by weeks end! Cross your fingers…

  2. Good luck with the offer! I find that part of the process to be the most exciting and most anxious time of all.

    It’s not like buying a stock… there’s only 1 winner… and a million people bidding 😉

    Happy hunting!

    • Looking at these units is a lot like work. Some disappointment today. The quadraplex I’m looking at has some foundation issues that would have to be repaired. Damn it!! Back to the drawing board…

  3. It’s always smart to know what your plan is with the proceeds of a stock sale, esp with a dividend stock like T! Your timing proved very prescient! What price would you get back in with T?

    • kolpin,

      Thanks for stopping by! My timing with T was luck. I sold due to needing funds for the possibility of purchasing some rental property. As far as getting back into T, I’m not sure. However I would gladly buy it again if the opportunity presented itself.

  4. Pingback: Recent Buy | The Stoic Investor

  5. Pingback: Reflections On The Sell Off of 2012 | The Stoic Investor

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s