I sold yet another stock

Down to 16 portfolio companies

A week ago, I shared a post talking about portfolio construction and wanting to consolidate my portfolio into fewer positions. Stocks are roughly half of my net worth, so a 2% position in my portfolio really doesn’t move the needle overall. My net worth won’t have noticed if this 1% position does a 5x or goes bankrupt. Going forward, I want to put more weight into my decisions and bet bigger on the high conviction opportunities I come across, they are rare enough so might as well make them count!

As a result, I grouped my stocks into three baskets:

• Good Quality Co: A good business, that I’ll monitor closely and where I’m ready to sell fast on if the thesis doesn’t work out.

• Great Quality Co: A great business, where I’ll trim on disappointing news.

• Outstanding Quality Co: An outstanding business, where I’m reluctant to sell unless it’s very overvalued or the thesis is breaking.

Today, I sold a Great Quality Co: