In the past, I have shared my largest holdings across the sum of all my accounts at all brokerage firms where I hold stocks. Someone, who knows I am a very active trader, recently asked my why my long-term holdings haven’t changed much. The reason is simply that most of my trading occurs in my smaller holdings.
In addition to the model fantasy portfolio I share with every new user, I have several accounts funded with real money. For now, I share them with any Kapitallist who asks, they can watch my trades under the “transactions” tab as they like. For others, I’ll share my most recent trades here:
LONG TERM VALUE ACCOUNT September 17:
Sell 53 shares of Barrick Gold Corp (ABX) at $41.99. I did this because the value of my holdings in this stock had risen to $12,000. I have a rule where I try to keep my holdings of stocks in this Kapitall account under $10,000 each. The strategy also forces me to take profits on big positions. I still hold 243 shares purchased August 10.
LONG TERM VALUE ACCOUNT September 14:
Sell 64 (all) shares of Wells Fargo (WFC) at $36.08. I bought Wells Fargo at the beginning of the summer at $31.18 because this was one of the highest quality banks trading around book value. The stock is now trading far above book value and I decided I could find better value in the financial sector since many other companies are still trading below book value.
LONG TERM VALUE ACCOUNT September 11:
Bought 152 shares of AIG (AIG) at $32.99. The government was selling more of its stake in the company and the stock is trading below book value $44.23, according to Motley Fool. Kapitall’s number cruncher only looks at total book value. It also has a fair forward P/E ratio of 11. I plan to sell as the stock nears book value. Long term I have a hard time holding a company that has a history of high pay for poor performing executives.
SPECULATION ACCONT October 15 and October 4:
I sold 70 shares and 200 shares of Hewlett-Packard (HPQ) at $14.77 and $14.87 respectively. I had bought the shares at $18.44 in July, so I was selling them at a loss. I bought the stock expecting to make a quick play because the company was trading at a super cheap P/E ratio of 5. All it took was the announcement by the CEO that things were worse than previously expected and that lower earnings are in the pipeline for a while. What I have found is that when a CEO says things are worse than expected they can get even worse. This was a short-term trade. I was just buying a stock that was oversold in a panic down from $28 to $18. When it turned out to be well-informed panic I decided I would take my loss and move on to something else.
SPECULATION ACCOUNT October 11:
I sold 100 Goldman Sachs (GS) shares at $122.51. I bought the shares on October 1 at $117.06 on the back of a Barrons Magazine story about the company trading below tangible book of $129. I figured the story would put some focus by smart value managers on the company. I also have the feeling that value managers who have treated all financial stocks as toxic waste are starting to take a look. I may buy back into this stock if the stock drops again and their recent positive earnings report gets more press.
DISCLOSURES: As of October 17th, Outside of the publically available Kapitall Generation accounts represented, in other non-Kapitall brokerage account, I own shares of AIG, ABX and WFC (partially hedged). I do not own HPQ, GS. I may trade GS again in the next few days.
WARNING: I have done dozens of trades in other non-publically available accounts during the period mentioned. Kapitall represents a portion of my total portfolio and should not be used by anyone to represent a diversified portfolio applicable to anyone. I share the portfolios and trades only for educational purposes.
The content is intended for educational information purposes only and should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.
David Neubert is Co-Founder and shareholder of Kapitall, Inc. (“Kapitall”). Kapitall Generation, LLC (“KapGen”) is a broker/dealer and a wholly owned subsidiary of Kapitall. Mr. Neubert is not an associated person of KapGen or any other broker-dealer and, other than his indirect relationship described above, he has no control or affiliation with KapGen.