In two recent articles, we talked about how it’s hard not to think that the markets will correct and we want to have as much cash free as possible. We have a 5-year buying plan (actually 56 months) so we’ve decided to pull back a bit on our buying and check back in early next year. We also think that freeing up cash is a good idea while at the same time doing as few transactions as possible. With that said, we sold shares in Chevron (CVX) because it was one of our top-3 biggest positions. We’re also feeling good about having lower exposure in anticipation of their coming dividend announcement which would remove their status as a dividend champion if there turns out to be no increase. Trimming our biggest position, which was Realty Income (O), was a no-brainer as well for quite a
few reasons that we talked about before. Now we have one last position to trim.
The 3rd largest position we were holding was Proctor and Gamble (PG). This was more a function of selling our largest positions so that we could raise as much cash as possible with as few transactions as possible. It was less about having any particular good reason for selling PG. They’ve been on a run up lately after dipping quite low on concerns about future revenue growth. We were up on our position about 11% so it wasn’t like we had accumulated a position at very low prices. Now we’re actively buying $215 in PG shares per month over the next 54 months according to our dollar cost averaging plan.
Here’s what our deposits look like for these sales:
After our 3 sales, we managed to free up $36,243 which brings our total cash stockpile to $163,885. We’re holding cash in a few other accounts apart from what’s seen above. We’d love to see a market crash in the coming years as then we can go shopping. As for money we have in the market, we’re sitting at around $155,000 in our Quantigence DGI portfolio. This way we still have market exposure in each of our 30 stocks and this also serves as a benchmark of sorts so we can see when certain stocks go on sale.