Portfolio Teardown – Stock #3

To see Part 1, where you can read about my adventure in hedging against a non-existent oil price spike.

To see Part 2, where I write about holding onto a stock because it’s worth less than the transaction cost.


Current Percentage of Portfolio: This investment makes up 3.7% of my portfolio

Reason for the Investment: As anyone who may be keeping up with my project of self-evaluation of my investments, you may note that in some cases I may not have had an amazing plan behind some of the things I put money into. This keeps with the general trend of not really having a good hypothesis for purchasing the security.

I’m hoping that my new long-term strategy, which will at least have some level of reasoning behind future investments besides the “I read a thing written by one guy that made lots of sense so I’ll throw some money at it” plan that I had ten years ago.

Out of the three securities I’ve written about, this one at least has a positive return – providing a return of 19.2% over the approximately 8 years that I’ve held onto it.

This investment wasn’t exactly a mistake, but I’m sure there would have been a better place to put my money, or at least something that I understood a little better. The MSCI EAFE index is made up of “large and mid-cap equities across developed markets in Europe, Australasia and the Far East, excluding the U.S. and Canada” and does provide some geographic diversity to my almost exclusively North American centric portfolio. What it doesn’t provide is the cashflow that I’m looking for from a security.

Current action: I’m going to sell it to add to the small amount of money I’ve accumulated to buy something that aligns with my retirement fund plans, which I will outline in more depth next week.

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