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.

2 thoughts on “Second Sale of 2015 – BHP Billiton

  1. As always, it’s rare to read about dividend stock sales among our community but when they occur it’s usually for good reason. I remember a while back when ARCP was all the talk and recently KMI is making the rounds for the same reason. Now BBL. It will be interesting to read if others sell as well. Thanks for sharing.

    • Hi DH,

      That’s right: its rare to read about selling of stocks in our community and frankly, I’d to think hard about it but in the end, I trimmed them becoz I did not feel comfortable with too high weight-age in energy sector. My actions were just to fine tune their overall size. In the end, you want to have a portfolio where you can sleep well like a baby and not to have worry about it for 5-10 years. Also, I wanted to do some tax loss harvesting and may buy them back next year. I’m long on BBL and also KMI. I remember when ARCP (and now Vereit Inc) was in similar shoes. I’m hoping that energy sector will recover and patient investors are rewarded. Thanks for stopping by as always.

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