Do not know if everyone has read my previous blog on MFI statistics, but it seems as clear a road map for making money that anyone could ask for. When I was struggling with MFI in 2011, the best thing I ever did was sell everything and start with a clean slate and a new rule book a year later. I think I need to do that again. Here are all my current holdings:
|Stock||Avg Cost||Current Price||Dividends||Gain per Share||Pct Gain||Pct of Portfolio|
I think I will sell a large proportion of these stocks. Looking on the list, here is what I should sell:
BBEP, KLIC, RIOM, TLM, GPS, FSC, TPVG, TSL, TIME and EXETF. In addition, cut my GTAT share in half and GNW in half. With multiplier, that would equal about $1,000,000. Then I create 4 new MFI tranches that are dedicated to this new top right quadrant (650 million or greater market cap and 2.6% yield or greater), with 250,000 in each one. Then I stop any discretionary purchases, only way to buy discretionary is to sell discretionary.
It is bold. But I think the time may have come to be bold. I believe it will ultimately give me better results with less churning. I start on Monday. First purchase will be October 1st.
As a note, the stocks that would be considered today would come from this list:
Yes, looking at that list, I can see this will take some courage! But it is going to start happening. If it takes 100 years to grow an Oak Tree, you are best off starting as soon as possible.