Cleaning House: Positions Closed Part 3
In mid to late December I closed out 4 positions. The fact was I owned too many companies and (1) couldn't follow them as closely as I'd like and (2) many positions were too small to "care" about. I had a few more potential positions to cut for either tax loss harvesting, performance or position sizing and decided to sell about 40% of one of my holdings right before the 2018 closed.
General Electric (GE)
I initiated a position in General Electric in July 2013 and picked up 2 more chunks throughout 2014. I took most of the dividends in cash; however, I did start reinvesting the dividend in early 2018. My total position in General Electric had grown to 175.888 shares, 170 of which I had purchased. On December 31st I sold 75 shares for $7.58 per share.
Excluding cash dividends received on those shares I took a 70% loss on the shares. Ouch! But at least I got $1,322.56 of losses to use against my gains for 2018. Silver linings!
|General Electric (GE) Partial Position Close|
Well, as 2018 moved along the share price kept drifting lower and lower and by December 2018 the dividend was cut again this time from $0.12 down to $0.01. This was done once again to reduce cash outlays and help shore up the balance sheet.
That has to be 2 of the worst Christmas presents I've ever received!
After sitting on some very ugly losses I figured it was time to cut some of my losses. I didn't want to completely close the position just yet because I expect there to be a a rebound as General Electric hopefully navigates this rough patch. Time will tell if they are successful or not.
So I reduced my position from 175.888 shares down to 100.888 shares. The plan is to try and use options as a way to reduce my basis over time but it's going to be a really long go of it.
The proceeds from this sale didn't amount to much at just $563.54 so this was very much a sale about tax loss harvesting and just reducing my exposure to an investment that realistically have a multi-year turnaround effort ahead of them.
This didn't have much effect on my forward 12-month dividends as that damage had already been done with the 2 dividend cuts/reductions. After selling the 75 shares my forward 12-month dividends were reduced by $3.00. Meh.
A few companies that I'm considering are Costco (COST), Visa (V), Altria (MO), Becton Dickinson & Company (BDX), J.M. Smucker (SJM), BlackRock (BLK) and PepsiCo (PEP).
Have you been tax loss harvesting? Did the bull market of the last 10 years let any positions creep into your portfolio that probably shouldn't have? What companies have you been buying or are you looking to buy at current prices?
Let me know in the comments below.