On Friday, markets were relatively flat. Among our stocks picks most of them fell somewhat on Friday.
Our two U.S. banks stocks were strong with Wells Fargo up 1.8% and Bank of America up 2.0%.
I reduced my position in Berkshire Hathaway. Basically, I am looking at the fact that I am up 21% this year to date on top of 28% last year and therefore thinking of trying to make sure I don’t end up giving back too much of that if I can help it. Looking at what I hold and thinking about what I might trim, Berkshire has one of the lower ratings and had increased further since my last rating. So, I decided to trim.
It seems I would have done even better this year had I not ran with a fair amount of cash. But I think it was prudent to run with cash. Markets or individual companies can drop at any time for many reasons and a decent allocation of cash is useful to take advantage of bargains from time to time.
I have updated the composition of my own portfolio. My portfolio is particular susceptible to a decline by virtue of the simple fact that it is concentrated in so few stocks. Luckily it seems those have been quality stocks but certainly there is a risk to being that concentrated.