Recently, I noticed that people have read my old bullish posts on my holdings, for example, Intel. So, I want to update folks about my recent sells.
I closed my Intel position. I sold Intel in part because it was languishing in the low twenties, and near term I don't see any reason for the stock to move in either direction. Their recent earnings point to a P/E of just a bit over 10. But I was shocked to hear the recent news that PC sales are down 13.9% year over year. I generally don't heed the sensational headlines, like tablets are replacing PCs. But this statistic is a wake up call. I just don't see Intel as that attractive an investment. I bought it at about $20 a year ago. I made about 12%.
I reduced my position in Microsoft because of the aforementioned PC situation. Also, I don't see Windows 8 or their tablet push or their partnership with Nokia working that well. On the other hand, I still think Microsoft is a worthwhile investment.
I reduced my Pfizer position because it has doubled for me in the past four years. I was lucky to get a bunch during the financial crisis. Pfizer had a lot of headline problems due to patent expirations. But that headline risk is gone now, it being such a large cap stock, I don't see how it can grow profits much. I still have some left, but only because I want to avoid capital gains tax.
So, a lot of these sells are because I am in the process of changing my investment style. I want to invest in less large cap stocks. I still do own large caps but my positions will be much more concentrated.
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