Friday, February 8, 2013

Stock Trade



I made a few adjustments to my portfolio this week.  I’m a Foolish Investor, buying advice from the investing gurus of The Motley Fools.  So far, my investment with them has paid off.  These guys aren’t clairvoyant or anything, but do have resources with which to scour the financial landscape looking for great companies.  With that in mind, I decided to do a little 2013 house cleaning.

My first order of business was to sell my position in Amazon.  Amazon has done me well over the last 18 months (43% return), but it’s quite expensive relative to earnings.  And I’m not sure this Dot Com hold-over can keep its momentum going.  Wall St. is all about growth, and it’s hard to keep doubling sales year after year.  So, I decided to part ways with the online Wal Mart and do some fruit shopping.

In case you lived in a cave, Apple stock has shed about 35% of its value over the past four months.  It was trading at $700/share on 21-September 2012, and hit a low of $439/share on 25-January 2013.  It’s now trading at about eleven times earnings. I thought now was a good time to get in, so I hopped on the Tim Cook train.  So, let’s see if Cook & Co. can get things rolling again.

No comments:

Post a Comment