Second Sale of 2015 – BHP Billiton

Its tough to sell the positions in companies that I evaluated them to be worthy of my portfolio of quality companies and hard earned capital used to build those positions. However, there are times when fundamentals change dramatically due to multitude of reasons. I believe that with we are in that period where energy segment is struggling to stay above the water, to say the least and it will be a while before it recovers.

I believe that BHP Billiton (BBL) is another company that I find fit to sell due to its deteriorating climate, charges related to Dam cleanup operations, commodities price slowdown and increasing cost of accessing capital. In order to protect the capital from further deterioration & reduce impact on passive income, I’ve decided to trim positions in BBL, though, still not completely sell them.

I sold 100 positions in BBL at $20.87 on 12/14. It was a tough decision for me to sell these positions. I’ll deploy this capital in other quality companies.

Full Disclosure: Long on above mentioned companies.

Thanks for reading.

What do think about my decision to sell BBL.

First Sale of 2015 – Kinder Morgan

As you know that I’m on a race towards earning $3000 Per Month in 3000 Days and my sole goal has been to collect fantastic companies over that time frame to grow the passive income and becoming financially free by covering all my expenses. In pursuit of this, I’ve been buying positions in blue chip companies in my Portfolio, never wanting to sell them. However, I evaluated the current trends in market especially energy segment and found that my portfolio has become heavily weighted towards energy sector as I’d averaged down on some of these companies: Kinder Morgan (KMI), ONEOK Inc (OKE) and BHP Billiton (BBL) besides other super-majors.

I was led to believe that Kinder Morgan (KMI) will keep its faith with its shareholders but, 75% cut in dividends was a real bombshell to me and I’m sure the rest of DGI community and other investors. With the slide in oil prices and the probability of extended duration of low prices, I believe that energy companies have much more slide remaining and possibility of dividend cuts in other energy related companies remain high, though, sudden events could reverse the direction on a dime as well.

In order to protect the capital from further deterioration & reduce impact on passive income, I’ve decided to trim positions in some of these energy companies, not completely sell them. This will better align my portfolio. I sold 100 positions in KMI at $17.00 on 12/11. It was a tough decision for me to push that sale button, to say the least. I’ll deploy this capital in other shareholder friendly companies.

Full Disclosure: Long on above mentioned companies.

Thanks for reading.

What do think about my decision to sell KMI, wise move or committed a classical mistake of selling low?