Good morning.
This month,
I need to take some profits and increase my cash.
Reason: Some of our recommended stocks have gone up a lot. Increasing my cash reserves will give me the ability to buy more shares should these stocks slip down again. And our analysts suspect volatility in the horizon.
Even if we know that over the very long-term, these stocks still have a long way to go, they wonβt go up in a straight line. There will always be the usual ups and downs. So when the dips come, I need ammunition.
So during times like these when the market is buoyant, Iβll sell 30% of my winning stocks (except for DNL and ALLHCβIβll explain later why). What do I mean by winning stocks? Any stock in my portfolio where I am positive by 8% or have gains of at least 8% or more. You can also top-slice IF you have winning stocks in your portfolio.
And then just hold onto the cash.
If you donβt have any profitable stocks yet, donβt fret. Youβre doing well! This is a long-term game. Remain patient. Your bountiful harvest will come one day.
βWait Bo, Why Sell Only 30%?β
Perhaps some of you are asking, βWait Bo, why sell only 30%? If you know that a stock is going down again, why not sell 100%? So I have more cash to buy it when it goes downβ¦β
I understand the question because I asked that too when I was a newbie. But very soon, I realized we can never predict the short-term gyrations of the market, only itβs long-term direction. So selling only 30% means that if for some reason, the stock keeps rocketing to the moon, 70% of my money is still riding that rocket. I still win.
(NOTE: For newbies who are selling stocks for the first time, and you donβt know how to navigate the COLFinancial page or what button to click, please email our COMHUB at [email protected] and weβll help you.)
Iβm Adding A Little More DNL
In my portfolio, my DNL is actually up by 27% and I can top-slice this, but I wonβt. Iβll add a little more. Reason: The company has been making the right moves, investing in their expansion, and I believe their prospects are really bright.
Weβre upgrading DNLβs Target Price (TP) to 9.50.
So you can keep buying it until itβs Buy Below Price (BBP) of 8.26. (The SAM table is now showing the updated TP and BBP.)
Hold Your ALLHC
And just in case you bought ALLHC before, and itβs positive, donβt top-slice. Itβs a young growth company. Keep it.
Resist The Urge To Withdraw
May I insert my pastoral advice for you? Keep your cash in your COLFinancial account. I know itβs Christmas and you have many inaanaks. But that specific cash is there for a specific purposeβso that you become a multimillionaire in the future. Donβt withdraw!
Happy investing, multimillionaire!
Watch for more updates in our December issue of STOCK UPDATES and also coming GOLD CALL.
May you become truly rich,
Bo Sanchez
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