Closing another two positions in preparation of a new addition
Closing our position in National Bank (NA) and M/I Homes (MHO) building a cash position for a new buy with a better risk-reward profile
Over the last couple of days, there have been many trades in the portfolio. This is not the norm but the exception. Usually, market volatility triggers relocation trades as some higher-quality companies become more attractive.
That is why I am building a cash position in both portfolios in preparation for those trades. I am finishing my deep dive into a new company and should be ready to release it before next Wednesday.
You may ask why it has taken so long, or if you know that you will be purchasing a new company, why delay?
I like taking my time. As I said to the carpet dealer in Istanbul who asked me, ‘What price can I offer you today so you buy the carpet?’ my answer was, ‘I am wired differently. I like to analyze it and come back to you when I am calm and not in the heat of the moment.’
As a result, sometimes I buy at a higher price than when I first decided to buy the shares. However, many times, I have avoided value traps.
Enough of my strategy, below are the closing trades.
Trade Alert:
Close NA position in the SVIF Canada portfolio.
Close MHO position in the SVIF USA portfolio.
Be patient as a Shark; this is the way!